The national government’s debt jumped by over 10 percent to reach P16.31 trillion as of end-January 2025 from P14.79 trillion a year ago.
This translated into an increase of over P1.5 trillion in the outstanding government debt over the past 12 months, according to the Bureau of the Treasury.
Data also showed than on a month-on-month basis, government debt rose 1.63 percent from P16.05 trillion as of end-December 2024.
The Treasury said despite the increase, the debt level remained “manageable and in line with the government’s target to support economic development while ensuring fiscal sustainability.”
The month-on-month rise in debt stock was due to the net incurrence of new domestic and external debt and the impact of peso depreciation against the US dollar from 57.847 at the end of 2024 to 58.375 at the end of January 2025.
It said that of the total debt stock in January, domestic debt accounted for 67.9 percent, while the remaining 32.1 percent was comprised of external obligations.
The end-January 2025 level of domestic debt reached P11.08 trillion, reflecting an increase of P153.68 billion or 1.41 percent from its end-December 2024 level.
This was mainly due to the net issuance of government securities of P152.17 billion as gross issuances of P270.01 billion exceeded repayments of P117.84 billion to partly finance the projected deficit.
Meanwhile, the valuation effect of local currency depreciation against the US dollar added P1.51 billion to the January debt total.
The government’s foreign debt reached P5.23 trillion, reflecting a 2.10-percent increase from December. This was driven by net availment of foreign loans amounting to P59.30 billion and the upward revaluation caused by unfavorable US- and third-currency movements amounting to P46.74 billion and P1.75 billion, respectively.
Government-guaranteed obligations decreased by 0.11 percent to P346.27 billion as of end-January 2025 from its end-December 2024 level, due to net repayment of domestic and external guarantees amounting to P1.55 billion and P0.25 billion, respectively.
The redemption of matured guarantees more than offset the currency valuation adjustments on US dollar and third-currency denominated guarantees amounting to P0.83 billion and P0.58 billion, respectively.
