The Marcos administration pursued aggressive borrowing strategies, focusing on loans from international institutions like the World Bank and IMF. This Period saw a rapid increase in the national debt, as funds were channeled into numerous development projects. However, a combination of corruption, mismanagement, and insufficient returns on investment projects led to a severe debt crisis (Dohner & Intal, 1989).

After the People Power Revolution and the fall of Marcos, the succeeding administrations inherited a significant debt burden. Despite efforts to stabilize the economy, the debt continued to grow due to structural adjustments imposed by international financial institutions. The country entered agreements with creditors, which aimed to restructure and manage the debt, but these often came with austerity measures that affected public spending and economic growth (Toussaint, 2024).

The COVID-19 pandemic created unprecedented fiscal pressure on the Philippine Government. In response, the government borrowed extensively to finance healthcare responses and support the economy during lockdowns. The debt reached record levels as the government implemented stimulus packages and relief measures. This period marked a significant increased in both external and internal debt, as the country sought ways to mitigate the economic downturn caused by the pandemic (Debuque-Gonzales et al., 2022).