Phl debt at P16.68-T but remains manageable

The Bureau of the Treasury (BTr) on Wednesday assured that the national government’s outstanding debt remains within manageable levels, with the total reaching P16.68 trillion as of end-March 2025.

Of the total debt stock, domestic borrowings made up P11.38 trillion or 68.2 percent, while P5.30 trillion or 31.8 percent came from external sources. The current mix, the BTr said, helps balance financing strategies by limiting exposure to external shocks and leveraging the liquidity of the local market.

“The NG’s robust revenue performance in Q1 (first quarter) 2025 has enabled the government to finance key priority programs without imposing new taxes, keeping debt growth well within sustainable levels,” the agency said.

The BTr emphasized that continued economic growth has outpaced the increase in debt, reinforcing efforts toward long-term fiscal consolidation.

“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 percent by 2028,” it added.

Investor confidence, reflected in recent credit rating upgrades and affirmations, has supported strong demand for government securities, the BTr said. This has helped the administration sustain affordable borrowing costs while driving inclusive development.

The current administration inherited a P12.79 trillion debt stock due to pandemic-era borrowing. However, the BTr highlighted that it has since reduced the debt-to-GDP ratio to 60.7 percent in 2024, below the international risk threshold of 70 percent, by growing the country’s gross domestic product to P26.44 trillion that year.

The government’s Medium-Term Fiscal Framework (MTFF) aims to bring the debt ratio further down to 56.9 percent by the end of 2028.