‘FREEDOM FROM DEBT’. Featured image above shows leaders of various organizations as they hit the national government’s continued borrowing and high debt servicing to the detriment of health and social services for Filipinos. (Photo: SDN Chronicle)

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B HOTEL, Quezon City, July 14, 2026 (SDN Chronicle) — What would it take the Philippine Government to have a financial system that’s fair, clear, and plainly accountable?

The question arises from the call of various organizations during a press conference here today, Tuesday, co-organized by the Freedom from Debt Coalition (FDC) with the AIDS and Healthcare Foundation (AHF) which revolves around the theme “Debt Addiction Must Stop” and “Freedom from Debt”.

At the media event are Rovik S. Obanil, Secretary General, FDC; Dr. Ryan C. Guinaran, Country Program Manager, AHF Philippines; Councillor Kelly Denn Tomas, Atok, Benguet, Cordillera Autonomous Region (CAR); Atty. Karlo Inocencio, Legislative Staff, House of Representatives; Aldrin Bula, National Co-Convener, PANTAY Inc.; John Paul Caesar Delos Trinos, health economist and professorial lecturer; and Barangay Dolores Councilor Chesca Persia, Taytay, Rizal Province, and Chairperson, Crisis Response Committee, LakasBayi Feminist Leadership Network.

They are in the press conference in anticipation of President Ferdinand R. Marcos, Jr.’s forthcoming State of the Nation Address (SONA) this month on July 27.

It’s the groups’ presentation of their own State of the Debt Address (SODA) cum-campaign launch.

Their SODA put the spotlight on the Filipino nation’s “growing debt burden, and called for a better government management on debt servicing,” a media briefer pointed out.

Another of their observation noted the country being weighed down by its highest debt burdens in recent history.

“This is reflected in the national budget, where debt servicing receives an allocation several times higher than the combined budgets for health and social services,” which the groups emphasized have compromised the quality of healthcare services and the availability of social protection programs for ordinary Filipinos.

FDC alleged that the government has been addicted to borrowing even as payments for its debt is way higher than the budget allocation on health and social services.

Government borrowing back with a vengeance

“Parang naadik na ang gobyerno sa pangungutang. Borrowing has become a lazy, convenient way to source funds. Ang kasi lang, mangungutang tayo para sa mga proyekto, kukurakutin ng ilang opisyal, at taumbayan ang magbabayad para sa pondong nauwi sa wala,” Obanil said.

(Translation: Looks like the government has been addicted to borrowing, which has become a lazy, convenient way to source funds. It’s because we borrow for projects, then stolen by some officials, and the citizens will pay for the funds that went to nothing.)

It’s unfortunate, he added, that Filipinos are paying twice, as they pay their taxes, and receive poor healthcare and social services.

This situation led him to warn that “the current debt spiral could lead to a full-blown debt crisis similar to the 1980s, as (the) Philippines outstanding debt reaching a record Php18.55 trillion at the end of May 2026),” the FDC leader said.

In relation with this, AHF’s Dr. Guinaran highlighted the need to put in place reform in how the global government debt system is done.

“Sa kasalukuyang sistema, umaagos palabas ang yaman ng mga developing countries, habang milyung-milyong mamamayan ang humaharap sa kakulangan ng pondo para sa public services,” he noted.

(Translation: In today’s system, the riches of developing countries are flowing outside while millions and millions of citizens are facing lack of funds for social services.)

“Nanawagan ang AHF para sa sistemang pinansyal na patas, malinaw, at may klarong pananagutan — kung saan hindi naco-compromise ang health at social services ng mga Pilipino,” Dr. Guinaran added.

(Translation: AHF is calling for a financial system that’s fair, clear, and with clear accountability — where Filipinos’ health and social services are not compromised.)

In his presentation at the event, Obanil recalled the revelation of Cielito Habits, then the secretary of the National Economic and Development Administration (NEDA), saying that government tax revenues in 2004 at Php605 billion was almost matched by the debt service payments at Php601.7 billion.

Of the Php601.7 billion, the interest payment for the government debt was at Php260.9 billion and Php340.8 billion for the amortization of the principal, he pointed out.

The FDC secretary general blamed the cause of the “bitter pill of hiking the hated value added tax (VAT) in 2006” to what he described as the “looming fiscal crisis” as a result of the increasing debt and persistent deficits.

Obanil also the Philippine debt problem is a “sticky” one as he recalled President Benigno S. Aquino III’s regime which some optimists thought was becoming a thing of the past.

But it “has come back with a vengeance,” he maintained.

“Latest data from the Bureau of Treasury (BTr) puts the Philippines’ outstanding debt at Php18.55 trillion, with 68.4% representing domestics debt and 31.6% representing external borrowing,” the anti-debt advocate said.

PH debt is every Filipino’s concern, not just government officials

Dr. Guinaran said they “are pushing for mandatory debt pauses,” mentioning Ecuador’s stand versus foreign debts or repudiation illegitimate debts which their Supreme Court upheld.

Atok Councilor Tomas lamented that their local government is not able to provide adequate basic services for their hometown’s mostly indigenous inhabitants even amidst the Mandanas ruling of the Supreme Court, perhaps blaming the country’s debt and its servicing.

He said because of their LGU’s scarce budget, it was not able to extend assistance to the farmers and the training of nurses for healthcare.

Tomas suggested a comprehensive solution. “Let’s address everything. Efficient tax collection while corruption is also addressed.”

Bula of PANTAY, Inc. said there are many ways to address the country’s debt situation. “If our debt problem is solved, everybody will be happy.”

Health Economist Delos Trinos advocated the intensification of collection of taxes as he cited bottoms up budgeting, fiscal discipline, and that the middle class should be provided ways to grow.

“PPPs (public-private partnerships) are usually designed for profit. The problem there is cost-sharing. Considering the rampant corruption and incompetence, PPP is advisable,” he suggested.

Delos Trinos also noted healthcare situation in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), where he said life expectancy is way below national figures. He attributed this to what he called inadequate healthcare funding, among others.

Barangay Councilor Persia took note of women’s important role in the family and the community at the same time, obviously, lamenting the country’s gargantuan debt, believing that a solution is possible.

To make her point, she mentioned Pasig City, Metro Manila, Mayor Vico Sotto who was able to erased the city’s debts. “Today, Pasig City has no more debts.”

Obanil cited some of the negative impacts of the country’s debt and its enormous servicing, claiming that for every Php1 billion spent for payment could have built 200 classrooms that would ease students’ congestion now at 60 per 30 students a classroom.

Just the interest payments, he asserted, could have been used for millions of school-based nutrition packs to fight stunting and hunger in vulnerable provinces.

” We at FDC believe that foreign debt is not only the concern of high government officials but everyone is affected by such foreign debt,” Obanil said.

The anti-debt group presented their SODA as in the form of “Kapihan” Media Discussion that gave the reporters and bloggers in the event opportunity to shoot many questions. — EDD K. USMAN/SDN Chronicle (√)

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The author

EDD, a native of Sub-Saharan Africa Buluan/Datu Piang, Maguindanao del Sur, BARMM, college at UST, is a Manila-based journalist for over 40 years (33 years with Manila Bulletin), has five Media Awards (1 with University of the Philippines (UP) 2017 Science Journalism Award), covered and traveled over 40 times abroad), has contributed to Rappler, Business Mirror, Manila Business Insights, Panorama Magazine, Agriculture Magazine, and others, former Manila-based Foreign Correspondent of Saudi Arabia newspapers Saudi Gazette and Riyadh Daily, and The Peninsula (Qatar newspaper), with 2008 East-West Center (EWC) Journalism Seminar in the United States, 2000 Executive IT Seminar in Seoul, South Korea, with three Silver Awards in Photography, writes Muslim and Current Affairs, Enterprise, Science, Tech, Products Launch, and virtually everything under Heaven. (®)