On high public debt and attaining endless prosperity

ENERGY, INFRA AND ECONOMICS

- BIENVENIDO S. OPLAS JR.

I want to comment on four economic events last week in the country.

One, President Ferdinand Marcos Jr.'s order that PhilHealth's P60 billion excess funds reverted to the National Treasury will be returned to the state-run health insurer. Funds will be sourced from the savings of other agencies like the DPWH.

Two, revenue collections by regional offices of the BIR and BOC, especially in Cebu. Three, release of TIEZA annual report 2024, and four, the Philippines - United Arab Emirates (UAE) "Government Experience Exchange Forum" last Sept. 17.

On the PhilHealth fund, I think a better option is to use it to retire some public debt, or avoid borrowing the same amount for next year. Raise the funding cut from more agencies up to possibly P100 billion and pay more debt.

Our public debt has reached P17.56 trillion as of July 2025, from only P8.22 trillion in 2019 prior to the lockdowns of 2020-2021. Our interest payment alone from our rising public debt would be: P763 billion in 2024, P848 billion in 2025, P950 billion in 2026, P1,071 billion or P1.07 trillion in 2027 and P1.18 trillion in 2028.

These are equivalent to an average of P2.1 billion/day in 2024, P2.3 billion/day in 2025, P2.6 billion/day in 2026 and P3.2 billion/day in 2028. Huge, principal amortization not included yet.

Whatever savings from cutting the budget of certain agencies pay the debt. Whatever new revenues from government privatization like the CBK hydropower plant pay the debt.

We should aspire to flatline it, then decline the debt, no economic crisis now to justify endless expansion of deficit and borrowings.