Philippines projects record 21.48 trillion peso debt by 2027

The Philippine government is set to breach the 21-trillion-peso debt mark for the first time, with total liabilities projected to reach a record 21.48 trillion pesos by the end of 2027. This forecast comes as President Ferdinand Marcos Jr. submitted a proposed national budget of 7.2 trillion pesos for 2027 to Congress on Tuesday, August 11, 2026, a plan that relies heavily on increased borrowing to fund infrastructure and development programs amid a sluggish economy.

The proposed budget, which is 6% higher than the 2026 allocation, aims to revive growth after the economy expanded by only 2.3% in the second quarter of 2026, its weakest pace since 2021. The slowdown was attributed to a slump in construction and softer domestic demand, partly linked to a corruption scandal involving the Department of Public Works and Highways. The government has set a GDP growth target of 5.0% to 6.0% for 2027 to 2030.

To finance the spending plan, the government intends to borrow a total of 3.3 trillion pesos in 2027, a 20% increase from the 2.73 trillion pesos programmed for 2026. This borrowing is necessary to cover a projected fiscal deficit of 1.69 trillion pesos for 2027, up from 1.66...