The country’s total outstanding government debt stood at P16.92 trillion as of end-May 2025, reflecting a modest 0.99 percent increase of P166.20 billion from April levels, according to the Bureau of the Treasury.
Despite the uptick, officials emphasized that the debt burden remains manageable and in line with the government’s prudent fiscal programming. The slight debt expansion was attributed to strong domestic securities issuance, signaling continued investor confidence in the country’s economic underpinnings.
Domestic borrowings accounted for P11.78 trillion or 69.6 percent percent of total debt, marking a 1.64 percent, or P189.96 billion, increase month-on-month. This was driven by net issuances of P190.87 billion, partially offset by the peso’s appreciation, which shaved P0.91 billion from the valuation of dollar-denominated liabilities.
Meanwhile, external debt declined by 0.46 percent, or P23.76 billion, to P5.14 trillion, mainly due to net repayments and favorable foreign exchange movements. A stronger peso led to a P29.35 billion reduction in the peso-equivalent value of external obligations, although this was partly countered by a P9.14 billion revaluation from third-currency exchange fluctuations.
The Treasury noted that the government continues to favor domestically sourced financing to reduce exposure to currency risk and to strengthen the local capital market.
In a separate category, guaranteed obligations increased by 1.79 percent (P6.04 billion) to P343.58 billion, driven primarily by net availments of domestic guarantees. However, the peso’s strength contributed to a P0.51 billion decline in the value of external guarantees. Year-to-date, guaranteed debt has fallen by P3.08 billion, while it posted a 1.89 percent decrease year-on-year.
Authorities reaffirmed their commitment to a prudent debt management framework, aligning borrowings with macroeconomic stability goals and fiscal sustainability.
