National Budget Supports Marcos Administration Priority Projects
MANILA, Philippines — The national budget is sufficient to back the Marcos administration’s priority projects over the next three years, provided there is careful spending without corruption, officials said. President Ferdinand Marcos Jr. emphasized that prudent use of funds is crucial to achieving this goal.
Although the government will continue to borrow money to finance the programs outlined in the fourth State of the Nation Address (SONA), the President assured that the country’s debt, currently at P17 trillion and climbing, will eventually decrease to a manageable level. “We will have enough budget to fund these projects. So long as the country’s money is being used properly,” he stated during the BBM Podcast’s third episode.
Proper Spending Ensures Budget Sufficiency
Marcos stressed that budget allocations must be strictly followed. For instance, if the budget law approves the construction of two classrooms, then two classrooms must be built—not just one. “Because that means someone pocketed funds,” he explained in Tagalog. The President believes that if the government is disciplined and transparent in spending, the budget will suffice for all priority needs.
He compared running the government to managing a business, where debts are liabilities used to invest in growth. “We take loans to invest in our people. Let us not look at just absolute numbers, that it already reached a trillion,” Marcos added, highlighting that the nation’s greatest asset is its Filipino workforce.
Investing in Filipino Workforce and Priority Programs
President Marcos underlined the importance of investing in training to help Filipino workers secure competitive jobs. In his July 28 SONA, he introduced key programs focusing on education, health, infrastructure, disaster response, and military modernization.
His administration received praise for initiatives like the “zero balance billing” policy for all patients admitted to Department of Health hospitals, regardless of income. Additionally, the continued sale of rice at P20 per kilo through Kadiwa stores and government outlets was highlighted as a significant support for Filipino families.
However, some groups, such as the Sin Tax Coalition, expressed concerns. They warned that many promises, especially those related to universal health care, might fail because they lack thorough evaluation by the Health Technology Assessment Council, as required by law. The coalition also questioned how the government would fund these programs without raising new taxes. They and health professionals continue to urge the government to increase excise taxes on harmful products like vape, alcohol, and sugary drinks.
Anti-Corruption Drive and Debt Management
Marcos condemned corruption in public infrastructure projects, particularly in flood control efforts. He ordered audits of unfinished or non-existent projects and vowed to pursue legal action against corrupt officials and contractors. The President believes that his anti-corruption campaign combined with prudent spending will gradually reduce the national debt burden borne by Filipinos.
Despite this, the proposed 2026 budget of P6.793 trillion indicates that debt will still rise as pandemic-era loans mature. The National Expenditure Program shows nearly P988 billion allocated to debt servicing, a 14 percent increase compared to 2025.
As of June, the Bureau of Treasury reported the national debt at P17.27 trillion, up by P348 billion from May. Domestic debt accounts for 69.2 percent of the total, while foreign loans make up 30.8 percent. The debt-to-GDP ratio increased to 62 percent in March due to slower economic growth but remains below the international threshold of 70 percent, reassuring officials.
Outlook on National Debt and Fiscal Policy
Malacañang stated the current debt level is not alarming since it stays within acceptable limits. The Department of Finance affirmed that the government remains on track to lower the debt-to-GDP ratio below 60 percent by the end of President Marcos’ term in 2028.
Officials also defended the administration’s borrowing, noting that it inherited a massive P12.79-trillion debt in 2022. Pandemic-related borrowing added another P6.84 trillion under the previous administration, surpassing borrowings of all prior six administrations combined.
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