Tue Sep 10 16:08:00 UTC 2024: ## Philippines’ National Debt Climbs, Sparking Concerns over Financial Leakages

**Manila, Philippines** – The Philippines’ national debt has been steadily growing, prompting concerns about the nation’s ability to manage its financial obligations. This issue was recently highlighted by Baguio City Mayor Benjamin B. Magalong, who expressed alarm at the rapid increase in debt levels.

“Our national debt has skyrocketed from 5.7 trillion pesos in 2016 to 15.48 trillion pesos in June 2024,” Magalong said, emphasizing a 142% increase in just seven years. “This alarming rate of growth is unsustainable.”

The increasing debt burden has led to a significant rise in interest payments, which are projected to reach 14.9% of total budget disbursements by 2026. This trend is causing worry among financial experts, as the country’s ability to manage its debt obligations while simultaneously promoting economic growth comes into question.

While Finance Secretary Ralph G. Recto assures that the Philippines’ debt-to-GDP ratio remains relatively comparable to other Southeast Asian countries, experts are emphasizing the importance of addressing financial leakages, particularly those caused by corruption.

“Our ability to pay our debt depends heavily on our capacity to manage these financial leakages,” Mayor Magalong said. “Corruption is a major drain on our resources and undermines our national budget.”

The ongoing congressional budget hearings are providing an opportunity for public scrutiny of government spending, with media coverage playing a crucial role in ensuring transparency. However, experts stress that transparency alone is not enough. Accountability must be demanded from those responsible for financial leakages, which ultimately exacerbate the debt-to-GDP ratio.

Santiago F. Dumlao Jr., Secretary-General of the Association of Credit Rating Agencies in Asia, highlights the need for vigilance regarding “pork barrel insertions” disguised as legitimate public projects. “Our lawmakers must critically examine all proposed spending to ensure that public funds are being used effectively and ethically,” Dumlao stated.

The Philippines’ escalating national debt serves as a stark reminder of the importance of fiscal discipline, transparency, and accountability in ensuring the country’s financial stability and long-term economic growth.

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