Recto: P17.27T debt manageable, projects benefit Filipinos

Finance Secretary Ralph Recto stated on Monday that the government is effectively managing the country's debt, which stood at P17.27 trillion by June 2025 and is projected to hit P24.7 trillion by 2030.

Recto emphasized that every peso borrowed is invested in productive projects that benefit Filipinos and assured that economic growth will outpace debt, ensuring the ability to meet financial obligations.

He noted that with proper fiscal management, the economy could grow to P42.6 trillion while keeping the debt-to-GDP ratio at 58% by 2030, marking the first time since 2020 that this threshold would fall below 60%, which is considered manageable for developing economies.

Recto expressed openness to reducing taxes if the deficit remains around three percent and the debt-to-GDP ratio stays below 50%

During a budget hearing, Recto also indicated that he would not oppose a wealth tax or reallocating flood control funds toward education spending as long as these measures are passed by Congress and can be effectively utilized.