Batangas 1st District Rep. Leandro Legarda Leviste warned that 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.
In a statement dated 27 March 2026, 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% of GDP, the highest debt-to-GDP ratio in the past 20 years,” he said.
Leviste flagged worsening fiscal indicators, noting that the deficit has reached 6 percent of gross domestic product while economic growth slowed to 4.4 percent in 2025.
“The government did not save for a crisis, as the deficit reached 6% of GDP, yet growth still slowed to 4.4% in 2025. Now, over 20% 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 added.
He cautioned against relying on additional borrowing and short-term relief measures. “We cannot borrow our way out of a crisis we spent our way into. The government is now promising tax cuts and fuel subsidies, but the truth is we do not have enough money to protect Filipinos from high oil prices unless we finally cut wasteful spending in the current budget,” Leviste said.
To address the issue, Leviste filed House Resolution No. 911, urging the government to generate at least P12.9 billion in savings from the country’s hosting of the 2026 ASEAN Summit. He said the proposed savings are among several measures that could help ease fiscal pressure.
The lawmaker also called on the public to support efforts to push government agencies to reduce unnecessary expenditures, warning that delays in action could worsen the country’s financial outlook.