Malacañang clarified that the over P4 trillion borrowed under the Marcos administration was spent on essential public services and development programs, not wasted on frivolous spending.

Communications Undersecretary Claire Castro said this as critics raised concerns about the ballooning borrowings under the current administration.

In a press briefing on Monday, July 7, Communications Undersecretary Claire Castro said the loans went to “growth-enhancing” investments, including infrastructure, education, agriculture, health, and social services.

She emphasized that aid programs, particularly for vulnerable groups, and sectoral support for farmers and fisherfolk, are among the tangible outcomes of responsible borrowing.

“Makikita po natin kung ano ang mga tinulong ng Pangulo at pamahalaan sa mga farmers natin, sa mga mangingisda po natin (We can clearly see the help extended by the President and the government to our farmers and fishers),” she said.

“Pati po itong pagpapataas din po ng mga ayuda at tulong sa ating mga kababayan. Makikita niyo po 'yan (This also includes the increased aid and assistance for the public. You will see that),” she added.

As of end-March 2025, the Philippines’ national debt stood at P16.96 trillion, according to the Bureau of the Treasury. This translates to a 62 percent debt-to-GDP (gross domestic product) ratio, up slightly from last year’s 60.2 percent.

Despite the rise, Castro assured the public that the current debt level remains “sustainable” and within international standards.

“According to our Department of Finance, [the debt level] is sustainable. Nasa sustainable level po tayo (We are at a sustainable level),” she said.

“The international threshold is 70 percent. So nandoon pa po tayo sa range (We are still within that range),” she added.