As of February of 2006, The national government’s total indebtedness has ballooned to P3.96 trillion, P2.17 trillion in domestic debt and 1.79 trillion in foreign debt. For this year’s proposed P1.053-trillion budget, interest payments alone, at P340 billion, account for 32 percent of the entire fiscal pie.

Of the post-Marcos governments, it is the Gloria Macapagal-Arroyo administration that holds the distinction of being the country’s highest single borrower. From 2001 to 2005, the Arroyo government has incurred additional debts amounting to P2.44 trillion, more than half of the current outstanding debt, for an average of P487.9 billion every year.

What is mind-boggling, (Freedom from Debt Coalition) FDC points out, is that the Arroyo administration’s debts far exceed the combined borrowings of its post-Edsa predecessors by almost P1 trillion. The Aquino (1987-1991), Ramos (1992-1997) and Estrada (1998-2000) governments incurred P338 billion, P401 billion and P725 billion, respectively, for combined total borrowings of P1.46 trillion. (http://www.pcij.org/blog/?p=977)

Though internal borrowing is higher that the foreign borrowing, Philippines still rank as number 37 out of 206 countries with foreign debt. As of 2005, Philippines has an accumulated external debt of $ 67,620,000,000. (http://www.cia.gov/cia/publications/factbook/rankorder/2079rank.html)