The Philippines may face a debt crisis worse than the ongoing oil shock if the government fails to cut wasteful spending and rein in its fiscal position, Batangas 1st District Rep. Leandro Legarda Leviste warned.

In a statement on Friday, Leviste said rising global oil prices are already weighing on the economy but stressed that the country’s growing debt burden poses a more serious long-term risk.

“This year, the Philippines will lose an estimated P300 billion from higher oil prices, but our bigger problem is that our national debt will exceed P19 trillion or 65 percent of GDP, the highest debt-to-GDP ratio in the past 20 years,” he said.

Leviste flagged the worsening fiscal indicators, noting that the deficit reached six percent of the gross domestic product (GDP) while economic growth slowed to 4.4 percent in 2025.

Caught flatfooted

“The government did not save for a crisis, as the deficit reached six percent of GDP, yet growth still slowed to 4.4 percent in 2025. Now, over 20 percent of the taxes Filipinos pay goes just to interest payments. This is an economic burden worse than high oil prices and is getting worse each year,” he said.

He cautioned against relying on additional borrowing and short-term relief measures.