The funds automatically allocated by the state for debt service increased further for next year. In the National Expenditure Program (NEP) submitted by the Department of Budget and Management (DBM) yesterday to Congress, ₱876.7 billion or 13.8% of the ₱6.352-trillion proposed budget was allocated to the payment of the Philippines’ enormous debt. This is 12.1% higher than last year’s allocation.

Most of the funds (₱848 billion) will only cover interest paymnts. This is 25.6% higher than allocations for interest payments last year.

The DBM revealed that the necessary allocation for debt payment has increased because of maturing loans incurred by the Duterte regime in the guise of responding to the Covid-19 pandemic. From January to October 2020, Duterte’s borrowing reached ₱3.2 trillion, with a large part from the Asian Development Bank.

The debt of the Philippines accelerated even more under Marcos. In the past two years, the new borrowing of the Philippines reached ₱204.7 billion per month, which is twice as much as compared to Duterte’s time of ₱95 billion per month. In May, the Philippines’ debt reached ₱15.35, and is projected to soar to ₱17.35 trillion by the end of 2025.

The increase in debt payments means budget cuts to other agencies and projects that are much needed by the people. Deductions are often from funding for social services, such as education and health.