Surviving the debt pit
Malacañang was quick to assure the public that the government’s ballooning debt, now at P16.92 trillion as of end-May, was nothing to worry about. Sustainable, they said. Within international thresholds, they added. However, if the public is expected to simply nod along, they better be ready for a reckoning.
The Bureau of the Treasury’s statement on 3 July spun the numbers positively, calling the less-than-one-percent month-on-month increase “modest” and reflective of investor confidence. What it failed to mention is the sheer scale of obligations now burdening every Filipino. For a government that trumpets growth and stability, it remains conspicuously silent on how exactly it intends to pay off these massive debts without choking essential services or raising taxes in the long run.
Groups like the Freedom from Debt Coalition have called out the Palace for what they say are “misleading” claims. They argue that comparing our 62-percent debt-to-GDP ratio to that of developed economies ignores the obvious—we’re far from being at par with them.
Our tax base is smaller, our informal sector is large, and our social safety nets are thin. Simply put, we don’t have the same capacity to absorb debt shocks. Even the 70-percent debt threshold being cited conveniently moves the goal posts from the pre-pandemic 60-percent limit once considered prudent.
What’s more troubling is the government’s increasing reliance on local borrowing. With domestic debt now accounting for 69.6 percent of total obligations, it’s clear that the administration is relying heavily on local markets to mitigate foreign exchange risk. However, this merely shifts the problem inward—into our banking system, where institutions are already exposed to rising interest rates. That’s not fiscal resilience. That’s containment.
And let’s talk about cost. Last year, debt servicing reached an all-time high of over P2 trillion—money that could have been allocated to hospitals, classrooms, and disaster preparedness. Instead, we’re spending more than ever just to stay afloat. Economists have raised the alarm about a possible debt spiral, where new borrowings merely cover old obligations. That’s not strategic borrowing. That’s survival finance.
International analysts, such as AMRO and Capital Economics, while not yet panicking, are urging vigilance. They’ve warned the Philippines to accelerate fiscal consolidation—code for cutting spending or raising revenues. In other words, a belt-tightening is coming. And when it does, the real burden won’t fall on the Palace—it will fall on workers, small businesses, and taxpayers who were promised growth but will end up footing the bill.
The bottom line is this: the economic managers say the debt is manageable, but managing the debt isn’t the same as paying it off. So far, the strategy appears to hinge on optimism—a hope that growth will outpace interest, that inflation will remain tame, and that the markets will remain forgiving.
But if any of those variables shift, we may find ourselves paying not just for yesterday’s promises, but for today’s miscalculations. The numbers may be within range now, but the question lingers—how long can the government keep kicking the can down the road before it hits a brick wall? JASON MAGO
E-sabong’s court ‘magic-strate’
Even the judiciary branch is now swept up in the missing “sabungeros” scandal. Following an investigation into the involvement of police officers, a former judge is now under scrutiny.
The Supreme Court has launched an investigation into a former judge—now a top official of a government gaming agency—whom whistleblower Julie “Totoy” Patidongan tagged as facilitating cases involving e-sabong.
Justice Secretary Jesus Crispin Remulla confirmed that the Supreme Court has taken the lead in investigating a former judge who allegedly played a prominent role in the lucrative racket.
Patidongan claimed the ex-judge holds a high-ranking government post and enjoys continued protection from other top officials in the agency, some of whom have close ties to Malacañang.
The former sabungero, now a key witness, said this protection enabled the ex-judge to act with impunity in resolving legal issues that the gambling operations encountered.
Remulla hinted that the scope of the investigation extends beyond the judge, citing “irregular behavior” that may affect the integrity of the justice system.
He added, “The Supreme Court is the best ally we have for this.”
The case has drawn widespread public attention since 2022, as the families of the missing individuals demand justice. The new revelations have only heightened calls for a full government crackdown on what appears to be a well-entrenched network of corruption, gambling, and judicial abuse. DTGroups like the Freedom from Debt Coalition have called out the Palace for what they say are “misleading” claims. They argue that comparing our 62-percent debt-to-GDP ratio to that of developed economies ignores the obvious—we’re far from being at par with them.
Our tax base is smaller, our informal sector is large, and our social safety nets are thin. Simply put, we don’t have the same capacity to absorb debt shocks. Even the 70-percent debt threshold being cited conveniently moves the goal posts from the pre-pandemic 60-percent limit once considered prudent.
What’s more troubling is the government’s increasing reliance on local borrowing. With domestic debt now accounting for 69.6 percent of total obligations, it’s clear that the administration is relying heavily on local markets to mitigate foreign exchange risk. However, this merely shifts the problem inward—into our banking system, where institutions are already exposed to rising interest rates. That’s not fiscal resilience. That’s containment.
And let’s talk about cost. Last year, debt servicing reached an all-time high of over P2 trillion—money that could have been allocated to hospitals, classrooms, and disaster preparedness. Instead, we’re spending more than ever just to stay afloat. Economists have raised the alarm about a possible debt spiral, where new borrowings merely cover old obligations. That’s not strategic borrowing. That’s survival finance.
International analysts, such as AMRO and Capital Economics, while not yet panicking, are urging vigilance. They’ve warned the Philippines to accelerate fiscal consolidation—code for cutting spending or raising revenues. In other words, a belt-tightening is coming. And when it does, the real burden won’t fall on the Palace—it will fall on workers, small businesses, and taxpayers who were promised growth but will end up footing the bill.
The bottom line is this: the economic managers say the debt is manageable, but managing the debt isn’t the same as paying it off. So far, the strategy appears to hinge on optimism—a hope that growth will outpace interest, that inflation will remain tame, and that the markets will remain forgiving.
But if any of those variables shift, we may find ourselves paying not just for yesterday’s promises, but for today’s miscalculations. The numbers may be within range now, but the question lingers—how long can the government keep kicking the can down the road before it hits a brick wall? JASON MAGO
E-sabong’s court ‘magic-strate’
Even the judiciary branch is now swept up in the missing “sabungeros” scandal. Following an investigation into the involvement of police officers, a former judge is now under scrutiny.
The Supreme Court has launched an investigation into a former judge—now a top official of a government gaming agency—whom whistleblower Julie “Totoy” Patidongan tagged as facilitating cases involving e-sabong.
Justice Secretary Jesus Crispin Remulla confirmed that the Supreme Court has taken the lead in investigating a former judge who allegedly played a prominent role in the lucrative racket.
Patidongan claimed the ex-judge holds a high-ranking government post and enjoys continued protection from other top officials in the agency, some of whom have close ties to Malacañang.
The former sabungero, now a key witness, said this protection enabled the ex-judge to act with impunity in resolving legal issues that the gambling operations encountered.
Remulla hinted that the scope of the investigation extends beyond the judge, citing “irregular behavior” that may affect the integrity of the justice system.
He added, “The Supreme Court is the best ally we have for this.”
The case has drawn widespread public attention since 2022, as the families of the missing individuals demand justice. The new revelations have only heightened calls for a full government crackdown on what appears to be a well-entrenched network of corruption, gambling, and judicial abuse.