Dennis Gaviola

Photo illustration of US dollar to PH peso exchange in this photo taken on September 30, 2022. Gigie Cruz, ABS-CBN News

Article (news)

Arthur Fuentes

ABS-CBN News

MANILA — The Philippines is looking to borrow P1.7 trillion next year to finance government expenses, the Department of Budget and Management said on Tuesday.Acting Budget Secretary Kim Robert De Leon said that the government plans to disburse P6.9 trillion out of the planned P7.2 trillion 2027 budget. With revenues projected to reach only P5.2 trillion, the government plans to borrow more money from creditors to bridge the budget gap.“Kaya ang kaukulang resulting budget deficit ay P1.7 trillion, which will be financed through borrowings. This is equivalent to almost 25 percent of the total program disbursements of the government,” De Leon said.Most of the borrowings will come from domestic creditors, De Leon said.“And itong borrowings naman natin, consistently it&#x27;s a mix between foreign and domestic borrowing. Largely, heavily, domestic borrowing pa rin ‘yung inclination ng ating pag-finance ng ating budget for next year,” he said.As of June this year, the Philippines’ sovereign debt has already reached P19.07 trillion. Domestic debt stood at P12.84 trillion, while foreign debt was P6.23 trillion.The Philippines has been borrowing heavily in the last few years, as it funds its infrastructure push and social safety programs amid global economic headwinds.President Ferdinand Marcos Jr. has said that the P7.2 trillion budget next year aims to sustain economic growth while remaining “fiscally responsible.”“This budget strengthens our capacity to invest in strategic infrastructure, human capital, food and energy security, and social protection, while reinforcing transparency, accountability, and the efficient use of public resources,” Marcos said in his Budget Message, which was submitted to Congress along with the proposed National Expenditure Program.Marcos said the fiscal deficit is targeted at a &quot;manageable 5.1 percent of GDP in 2027, declining to 4.8 percent in 2028 and further to 3.5 percent by 2030.&quot;The Philippines has been borrowing heavily since the pandemic, as it funds its infrastructure push and social safety programs amid global economic headwinds.Marcos inherited a massive P12.79-trillion debt when it took office in 2022 from the administration of former President Rodrigo Duterte. This was already more than double the P5.95 trillion debt that Duterte inherited from the administration of former President Noynoy Aquino.Economic managers have said that the rising debt is not a cause for worry as long as the economy expands faster than the debt. GDP growth however, has been slowing down in the last few quarters as government spending slowed amid a massive corruption scandal, and amid external economic shocks.- With a report from Vivienne Gulla, ABS-CBN News

As of June this year, the Philippines’ sovereign debt has already breached P19 trillion.

As of June this year, the Philippines’ sovereign debt has already breached P19 trillion.

Philippines to borrow P1.7 trillion next year to finance projected budget gap

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Philippines to borrow P1.7 trillion next year to finance projected budget gap

Arthur Fuentes,

ABS-CBN News

Published August 11, 2026 07:25 PM PHT

|

Updated August 12, 2026 09:11 AM PHT

Read More:

national debt

foreign debt

domestic debt

2027 budget

National Expenditure Program

budget deficit

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budget gap

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