The Philippines’ fiscal outlook for 2026 reveals a troubling paradox.  With revenues projected at ₱4.64 trillion and expenditures proposed at ₱6.793 trillion, the government faces a deficit of at least ₱2 trillion.  Despite persistent corruption scandals—ranging from overpriced materials to ghost flood control projects—banks and creditors continue to lend. This practice signals that repayment capacity matters more than developmental outcomes. In effect, financial institutions prioritize debt servicing over governance integrity, creating a moral hazard that perpetuates fiscal deficits and undermines genuine economic progress.  The Philippines’ fiscal story from 2016 to 2025 is  shown in Table 1  .  Revenues have consistently […]... Keep on reading: The complicity of creditors: Can borrowing serve development instead of corruption?