Recto bares how much PH debt has risen from Marcos Sr. to Marcos Jr.

Finance Secretary Ralph Recto on Wednesday revealed how much debt the Philippine government has accumulated from late President Ferdinand Marcos Sr.’s regime up to the present administration of the latter’s son and namesake, Ferdinand “Bongbong” Marcos Jr.

During the Senate’s continuation of its deliberations on the proposed P6.352-trillion national budget next year, Recto allayed concerns about the Philippines’ ballooning sovereign debt.

“Our total debt today is roughly P15 trillion, the size of our economy is P26.5 trillion,” the Finance chief said.

As of the first half of 2024, the country’s debt-to-gross domestic product (GDP) ratio stands at 60.9%, down from 61% as of end-June 2023.

Debt-to-GDP ratio measures the amount of the national government’s outstanding debt proportionate to the value of the economy during a specific period.

A lower debt-to-GDP ratio indicates that the country can pay off its debt without having adverse impacts on the economy.

As of end-June 2024, the country’s running debt stock reached P15.48 trillion, up 9.4% from P14.15 trillion in the same period last year.

The Finance chief was responding to Senate Minority leader Aquilino “Koko” Pimentel III queries about the country’s rising sovereign debt.

To illustrate how much the government’s debt has increased over the years, Recto shared how much debt has been accumulated by each administration since Marcos Sr.’s era:

• Ferdinand Marcos Sr. (1965 to February 24, 1986) - P367 billion
• Corazon Aquino (February 25, 1986 to June 29, 1992) - P739 billion
• Fidel Ramos (June 30, 1992 to June 29, 1998) - P1.420 trillion
• Joseph Estrada (June 30, 1998 to January 19, 2001) - P2.186 trillion
• Gloria Macapagal-Arroyo’s first term (January 20, 2001 to June 29, 2004) - P3.5 trillion
• Arroyo’s second term (July 1, 2004 to June 29, 2010) - P4.6 trillion
• Benigno Aquino III (June 30, 2010 to June 29, 2016) - P5.9 trillion
• Rodrigo Duterte (June 30, 2016 to June 29, 2022) - P13.4 trillion
• Ferdinand Marcos Jr. (June 30, 2022 to present) - P15.5 trillion

Despite the rising debt, the Finance chief said the country’s economic growth would outpace the increase in debts.

Recto earlier said that the country’s sovereign debt could balloon to as much as P20 trillion by the end of Marcos’s term in 2028.

“By 2028, the debt will be P20 trillion. The size of the economy will be P37 trillion,” the Finance chief said.

“What is important is our fiscal framework plan… we will reduce the deficit so that the debt-to-GDP ratio goes down… [we’ll be] utilizing that borrowed money to grow the economy so that more jobs are created —higher income, we reduce poverty and we can pay off our debts,” he added.

Due to the aggressive borrowing spree to fund response, relief, and cash aid efforts amid the COVID-19 pandemic, the country’s debt-to-GDP grew to 60.5% in 2021, higher than the 54.6% level in 2020.

Prior to the COVID-19 pandemic, the Philippines’ debt-to-GDP ratio reached a record low of 39.6% in 2019.—RF, GMA Integrated News