The Philippine government is projecting a ₱2.7-trillion debt service allocation in 2027 to settle principal amortization and interest on its growing debt.
During Monday’s budget hearing before the House Committee on Appropriations, Gabriela Party-list Representative Sarah Elago highlighted financial projections from the Department of Finance indicating that the state intends to borrow ₱3.304 trillion to finance the proposed ₱7.2-trillion national budget for next year.
Elago noted that out of the 2027 debt payment projection, ₱1.1 trillion will be directed to interest payments, while the remaining ₱1.6 trillion will go toward principal amortization.
”’Yan po, Mr. Chair, ang hindi masyadong napag-uusapan dito. Sa katunayan, nasa ₱2.7 trillion yung ating total debt service expenditure na sa totoo lang ay pagkataas-taas po,” Elago said.
“Mas mataas pa sa lahat ng gagastusin natin sa social services, sa economics at sa napakarami pang pangangailangan ng ating mga kababayan,” the lady solon added.
Elago stated that the country’s overall debt portfolio has expanded to ₱19.1 trillion, representing 64.9% of the gross domestic product, while the budget-to-GDP ratio has surged to its highest mark in 22 years.
“Hindi lang mga bahay at daan ang binabaha, binabaha rin ng problema ang mga ordinaryong mamamayan. Lubog ang agrikultura at manupaktura kaya kulang na kulang ang regular at disenteng trabaho at kabuhayan,” she said.
“Lubog sa utang ang marami sa taas ng presyo ng bilihin at napakababang sahod. Lubog din sa pambansang utang dahil sa pagkataas-taas na pambansang utang na umabot na sa ₱19.1 trillion o nasa 64.9% ng buong halaga ng mga produkto at serbisyo na ginagawa ng bansa,” Elago added.
“Dahil dito, bawat isang Pilipino ngayon may tinatayang ₱166,077 (na utang) at tataas pa maski ang hindi pa pinapanganak at susunod na salin-lahi lubog na lubog na agad sa pambansang utang,” Elago added.