The national government’s (NG) outstanding debt reached P16.68 trillion as of end-March 2025, a 0.31 percent increase from the previous month, the Bureau of the Treasury said Wednesday.
It said the strong revenue collection in the first quarter of 2025 allowed the national government to fund key programs without new taxes, keeping debt growth sustainable.
The BTr said with the economy expanding at a faster rate than its debt, the Philippines is well-positioned to achieve fiscal consolidation and reduce the debt-to-GDP ratio to under 60 percent by 2028.
“Moreover, the country’s recent credit rating upgrades and reaffirmations underscore strong investor confidence in the economy’s fundamentals, translating to greater demand for Philippine bonds, thereby preserving government access to reasonable borrowing costs, crucial for sustaining the inclusive growth momentum,” the BTr said.
Data showed that as of end-March 2025, domestic debt continued to comprise the majority, or 68.2 percent of the total debt stock, while external obligations accounted for 31.8 percent. The financing mix reflects a prudent approach to debt management to help mitigate exposure to external risks while taking advantage of the country’s liquid domestic market.
Domestic debt amounted to P11.38 trillion as of end-March 2025, reflecting a 1.39-percent increase from the end-February 2025 level. This was mainly due to the net issuance of domestic securities worth P157.86 billion, demonstrating strong investor confidence in government instruments.
The increase was partially offset by the peso’s continued appreciation, which resulted in a P2.03 billion downward revaluation.
Meanwhile, external debt totaled P5.30 trillion as of end-March 2025, reflecting a decline of 1.92 percent from the previous month. The reduction was primarily due to the P66.22 billion decrease in the peso equivalent of US dollar-denominated debt behind local currency appreciation as well as the net repayment of external loans, which further trimmed the external debt total by P60.84 billion.
These more than offset the P23.19 billion upward revaluation effect of third-currency movements against the US dollar.
