SONA 2026: Corruption, debt and the unfinished reform agenda
The article analyzes the economic challenges facing the Philippines ahead of President Marcos Jr.'s 2026 State of the Nation Address, specifically focusing on corruption, rising national debt, and currency depreciation. It argues that structural fiscal issues are hindering the funding of essential public services.
Why it matters
Understanding the intersection of debt and corruption is vital for assessing the economic stability and development trajectory of the Philippines.
President Ferdinand Marcos Jr.'s State of the Nation Address on July 27 will be delivered against the backdrop of a decade marked by corruption, fiscal mismanagement and widening inequality.
Estimates suggest that P8.8 trillion was lost to corruption between 2016 and 2025. Beyond the financial leakage, the figure represents the opportunity cost of classrooms left unbuilt, hospitals underfunded and farmers exposed to traders and import shocks.
The central issue for the Sona is whether the administration will move beyond short-term relief and confront the structural links among corruption, rising debt, peso weakness, import dependence and deteriorating public services.
When Marcos assumed office in mid-2022, the national debt stood at P12.79 trillion. By the end of May 2026, it had climbed to P18.55 trillion, an increase of nearly P6 trillion during his presidency.
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