The national government closed 2025 with outstanding debt of P17.17 trillion, up P1.66 trillion from end-2024, driven by fresh borrowings to finance development priorities and the drag from a weaker peso.
Despite the increase, the debt profile remained relatively stable. Domestic borrowings accounted for 68.4 percent of the total, insulating public finances from sharper foreign exchange shocks.
Domestic debt rose to P12.12 trillion, an increase of P1.19 trillion over the year, reflecting continued reliance on the local market.
Foreign debt climbed to P5.59 trillion, lifted by new global bond issuances, net disbursements of official development assistance, and the peso’s depreciation, which inflated the peso value of foreign currency obligations.
For the year, the government secured P1.18 trillion in net domestic financing and P317.02 billion in net external financing, channeling funds to infrastructure, social reforms, and the agriculture and industry sectors—underscoring a strategy that favors development spending while managing currency risk.
