Outstanding Philippine government debt ticked up slightly to P16.684 trillion by end-March 2025, a 0.31 percent month-on-month increase, signaling stability rather than strain.
Compared to the year-earlier period, the March debt level was 11.8 percent higher than the P14.926 trillion in March 2924.
This measured month-on-month rise, driven primarily by net domestic borrowing, reflects a deliberate debt strategy rather than fiscal pressure.
Backed by strong first-quarter revenues, the administration of President Ferdinand Marcos Jr. continues to fund priority programs without introducing new taxes—a move that supports investor sentiment and sustains market confidence. With the economy growing faster than its obligations, the government remains on track to bring the debt-to-GDP ratio below 60 percent by 2028, in line with the Medium-Term Fiscal Framework.
The debt profile remains resilient, with two-thirds of total debt sourced domestically—shielding the country from foreign exchange shocks. As of March, domestic debt rose to P11.38 trillion, largely from net issuance of securities. The strong uptake in local bonds signals healthy investor demand and trust in fiscal management.
External debt dropped 1.92 percent to P5.30 trillion, helped by a stronger peso and net loan repayments. Meanwhile, guaranteed obligations slid to P339.86 billion, underscoring the government’s effort to reduce contingent liabilities amid currency and market volatility.
Around 91.5 percent of the debt stock carries fixed interest rates, limiting exposure to global rate swings. With 81.3 percent of debt classified as long-term, the government retains flexibility to support growth-focused spending without liquidity stress.
Credit rating upgrades and reaffirmations continue to boost investor appetite for Philippine bonds, keeping borrowing costs favorable. While pandemic-era debt lingers, fiscal consolidation remains within reach—provided the government sustains revenue momentum and economic growth.
