The Philippine national sovereign debt rose to P16.68 trillion as of the end of March, higher by 0.31 percent from the P16.63 trillion compared to the previous month of February, “remains manageable,” said by the Bureau of the Treasury (BTr).
"The NG's robust revenue performance in Q1 2025 (first quarter of 2025) has enabled the government to finance key priority programs without imposing new taxes, keeping debt growth well within sustainable levels," said in a statement.
“With the economy continuing to grow faster than its obligations, the country remains firmly on track to achieve fiscal consolidation and reduce the debt-to-GDP ratio to below 60% by 2028,” BTr added.
Of the total debt stock, 68.2 percent was sourced externally, while 31.8 percent was from domestic borrowings, the BTr said.
Domestic debt amounted to P11.38 trillion, higher by 1.39 percent compared to the end-February level, data showed.
Meanwhile, foreign debt reached P5.30 trillion, declining by 1.92 percent from the previous month, records showed.
The increase was slightly tempered by a PHP 2.03 billion downward revaluation due to the peso’s appreciation.
Meanwhile, external debt declined by PHP 103.87 billion or 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,” the BTr said.
These factors offset a PHP 23.19 billion increase caused by third-currency fluctuations against the US dollar.
Despite the rise in total debt, the government emphasized that its debt management remains prudent and sustainable.
The majority of obligations — 91.5% — are fixed-rate instruments, helping shield the country from sudden shifts in global interest rates.
Furthermore, 81.3% of the debt is long-term, giving the government fiscal room to continue investing in growth-enhancing projects.
The Department of Finance (DOF) reaffirmed that strong revenue collection in the first quarter of 2025 enabled the government to finance key programs without the need to impose new taxes.
President Ferdinand Marcos, Jr. administration has inherited a substantial debt burden from the pandemic, roughly PHP 12.79 trillion, but it has since improved the nation’s debt metrics by lowering the National Government’s debt-to-GDP ratio to 60.7% in 2024, bringing it below the 70% international benchmark.
