Senator Sherwin Gatchalian sounded the alarm on the country’s ballooning debt during the Senate finance committee deliberations, stressing that the burden has now translated to ₱142,000 owed per Filipino.
“If we don’t manage debt, the Marcos administration will end its term by accumulating the highest debt accumulation out of all administrations,” Gatchalian cautioned, underscoring the urgency of stronger fiscal discipline.
The senator’s warning comes as the national government’s outstanding debt stood at ₱16.75 trillion as of April 2025, according to Department of Finance data. This marks a sharp rise from ₱16.05 trillion at the end of 2024, reflecting the government’s continued reliance on borrowings to support its budget and projects. Projections indicate that debt could climb further to ₱19 trillion by 2026, raising concerns over long-term sustainability.
In response, Finance Secretary Ralph Recto offered reassurance, pointing out that the debt picture must be viewed alongside the country’s economic indicators. “You can look at the debt to GDP or savings to GDP… one man’s liability is another man’s asset,” Recto said.
He explained that a significant portion of the obligations—around 70%—is owed domestically, making them assets held by Filipinos themselves. “It is your pension funds, it is invested by GSIS, invested by SSS… PhilHealth,” he added, noting that these borrowings are intertwined with the savings and social security of millions of citizens.
Government data show that the debt-to-GDP ratio stood at 60.7% by the end of 2024. Economists warn that this figure remains above the international benchmark for sustainability but emphasize that rapid economic growth can help bring it down.
