MANILA, Philippines — Amid concerns over the country’s ballooning debt, Malacañang defended the Marcos administration’s PhP4-trillion in borrowings, emphasizing that the funds were directed toward critical sectors that support long-term economic growth.

Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro said during a press briefing that the borrowed funds were used for “growth-enhancing investments” in infrastructure, education, agriculture, health, and social services.

“Ito po ay ginamit sa mga growth enhancing investments tulad ng infrastructure, education, agriculture, health at social services,” Castro said, underscoring the administration’s priority to support vital sectors.

“Makikita po natin kung ano ang mga itinulong ng Pangulo at ng pamahalaan sa mga farmers natin, sa mga mangingisda po natin; pati po itong pagpapataas din po ng mga ayuda at tulong sa ating mga kababayan – makikita ninyo po iyan,” she added.

The defense comes amid growing scrutiny over the country’s rising debt stock, which stood at PhP16.92 trillion as of May, according to the Bureau of the Treasury (BTr) — an increase from PhP16.75 trillion in April. Still, the BTr described the increase as minimal and “manageable.”

Citing data from the Department of Finance (DOF), Castro said the country’s debt-to-GDP ratio currently stands at 62%, still well below the international threshold of 70%, and remains sustainable.

“Nasa sustainable level po tayo dahil po 70 percent po ang international threshold for the debt-to-GDP ratio… Nandoon pa rin po tayo sa range, it’s supposed to be below 70 percent,” she said.

Castro also noted that the administration inherited a PhP12.79-trillion debt in 2022, which was largely driven by pandemic-related borrowing. The DOF earlier reported that the Duterte administration incurred PhP6.84 trillion in debt to fund COVID-19 response measures — an amount that surpassed the combined borrowings of previous administrations since the term of former President Ferdinand E. Marcos.