In a political landscape often dominated by loud bickering and theatrical hearings, a silent but seismic shift is occurring within the halls of the Philippine treasury—one that threatens to rewrite the narrative of the current administration and its predecessor. While the public’s attention has been captivated by the widening rift between the Marcos and Duterte families, President Ferdinand “Bongbong” Marcos Jr. (PBBM) has been quietly executing a financial maneuver that has left economists and political analysts stunned. In a revelation that is sending shockwaves through the “Solid North” and the “Duterte Die-hards” alike, reports have confirmed that the Marcos administration is aggressively paying off the colossal debts incurred during the term of Former President Rodrigo Roa Duterte (FPRRD), effectively cleaning up a financial mess that many feared would cripple the nation for generations.
For years, the Filipino public has been haunted by the specter of a ballooning national debt, a figure that seemed to climb inextricably toward the heavens. The number that has terrified taxpayers is 16 trillion pesos—a staggering sum that hangs like a dark cloud over the future of every Filipino child. Critics and observers alike have long asked: “Where did the money go?” and “How will we ever pay for this?” The anxiety is well-founded. The administration of former President Duterte is recorded to have registered the highest increase in national debt in the country’s history, leaving office with outstanding obligations hitting a record 12.79 trillion pesos as of June 2022. Much of this borrowing was attributed to the pandemic response, but it was also shadowed by persistent allegations of corruption, anomalous procurement deals, and “questionable funds” that have been the subject of countless Senate hearings.
However, a surprising plot twist has emerged in late 2025. Instead of the country sinking further into the abyss, the Bureau of the Treasury has released data showing a reversal of fortune that few saw coming. Under the stewardship of President Marcos, the government has not only halted the runaway train of borrowing but has begun to pay down the principal in record amounts. In a move that signals intense fiscal discipline, the administration settled a massive Php 814.2 billion in domestic bonds. This is not just a bookkeeping entry; it is hard cash being used to settle obligations that were largely accumulated by the previous leadership. The result is a tangible decrease in the total outstanding debt, dropping from 17.468 trillion to 17.455 trillion in September 2025. To the layman, these may just be numbers, but in the world of global finance, this is a miraculous stabilization.
The implications of this financial cleanup are politically explosive. For months, the narrative from the opposition and even from the Duterte camp has been one of economic doom. Yet, the data paints a picture of a President who is quietly functioning as the nation’s “debt cleaner.” By prioritizing the payment of these obligations, PBBM is effectively shielding the economy from the volatility of the global market. The decrease in domestic debt by over 114 billion pesos is being hailed as a “rare moment” in Philippine economic history. Finance Secretary Ralph Recto has indicated that while the nominal debt might still appear high, the critical metric—the debt-to-GDP ratio—is being wrestled back down to manageable levels, targeting below 60% by 2028. This strategy of “strategic borrowing” and aggressive repayment is a direct counter-narrative to the reckless spending accusations thrown at the government.
But the story gets even more controversial when one considers the nature of the debts being paid. A significant portion of these loans are tied to projects and emergency spending measures from the Duterte administration—funds that have been mired in controversy. The “Pharmally” scandal and other procurement anomalies during the pandemic raised serious questions about where the borrowed billions actually went. By paying off these specific debts, President Marcos is in a precarious position. He is essentially footing the bill for spending that many Filipinos believe was tainted by corruption. It raises a difficult moral and political question: Is it right for the current administration to quietly pay for the “sins” of the past without a full accounting? Or is this simply the pragmatic burden of leadership—saving the ship from sinking regardless of who poked the holes in the hull?
This development is likely to cause significant discomfort within the office of Vice President Sara Duterte. As the daughter of the former President, the spotlight on her father’s fiscal legacy is unwelcome. The narrative that PBBM is the one “fixing” the problems left by FPRRD undermines the claim that the previous administration was a “golden age” of governance. If the Marcos administration succeeds in stabilizing the economy by paying off Duterte’s loans, it shifts the power dynamic significantly. It paints PBBM not as the son of a dictator, but as the responsible steward cleaning up after a populist spender. It creates a stark contrast between the loud, often brash style of the previous leadership and the quiet, technocratic approach of the current one.
The reaction from the public is a mix of relief and indignation. On one hand, there is a sense of pride that the Philippines is honoring its commitments and reducing its reliance on foreign currency, which stabilizes the peso. The shift toward local borrowings reduces the risk of foreign exchange shocks, a savvy move that protects the average Filipino consumer from sudden price spikes in imported goods. On the other hand, there is anger. Taxpayers are rightfully asking why their hard-earned money is being used to settle debts that are linked to alleged corruption. The sentiment is clear: “Why are we paying for what others stole?” It is a bitter pill, but the administration seems to have calculated that the cost of defaulting or delaying payment—which would ruin the country’s credit rating and drive away investors—is far higher than the political cost of paying off a rival’s debt.
Ultimately, this saga reveals the complex and often ungrateful nature of governance. President Marcos, often criticized for his frequent travels and soft-spoken demeanor, appears to be playing a long game. By fixing the fiscal fractures left by his predecessor, he is attempting to build a legacy of economic resilience. Whether this will translate to popularity remains to be seen, but the numbers do not lie. The debt is going down, the obligations are being met, and the massive financial hole dug during the previous six years is slowly being filled. For the Filipino people, the hope is that this “cleaning” continues, leading to a future where the budget is spent on progress rather than paying for the past.
