Palace Defends Government’s Over P4 Trillion Debt
Malacañang on Monday stood firm in defending the government’s over P4 trillion debt, emphasizing that these funds were primarily invested in growth-enhancing projects. This substantial debt, incurred under President Ferdinand Marcos Jr.’s administration, has been channeled toward key sectors to fuel the country’s development.
Palace Press Officer Claire Castro highlighted that the borrowed funds supported vital infrastructure, education, agriculture, health, and social services. “We can see what the President and the government have done to help our farmers and our fishermen; even the increase in aid and assistance to our fellow citizens—you will see all of that,” she said.
Debt Remains Sustainable Despite Record High
As of May, the national government’s outstanding debt climbed to P16.92 trillion, up from P16.75 trillion in April. Correspondingly, the debt-to-GDP ratio rose to 62 percent by the end of the first quarter of 2025.
Quoting finance officials, Castro assured that the current debt level is still within a sustainable range. She noted that the international benchmark for debt-to-GDP stands at 70 percent, indicating that the government’s borrowing remains manageable.
Investing in the Nation’s Future
The government’s approach to managing debt focuses on funding programs that drive economic growth and improve public welfare. Investments in infrastructure projects enhance connectivity and commerce, while education, agriculture, and health initiatives aim to uplift communities and ensure long-term progress.
Local leaders and analysts have acknowledged that these expenditures, though increasing debt figures, are crucial for the country’s advancement. By prioritizing growth-enhancing investments, the administration seeks to balance fiscal responsibility with the need for development.
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