Gov't debt hits P16.31T, domestic borrowings 67.9%

As of January 2025, the national government's outstanding debt reached a record high of P16.31 trillion due to increased borrowings and currency depreciation.

Local obligations rose by 1.41 percent to P11.08 trillion, while external debt grew by 2.10 percent to P5.23 trillion.

The Bureau of the Treasury reported that domestic borrowings accounted for almost two-thirds (67.9%) of total debt, with foreign creditors contributing the remaining 32.1%. The month-on-month increase was attributed to net issuances of government securities and local currency depreciation against the US dollar.

Additionally, the depreciation of the peso from P57.847 at the end of 2024 to P58.375 at the end of January added approximately P1.51 billion and P46.74 billion respectively to domestic and external debt.

Finance Secretary Ralph Recto noted that the government plans to reduce foreign borrowings to minimize foreign exchange risks, targeting a 10 percent share from the current level of around 25 percent.

The Marcos administration aims to borrow P2.55 trillion from creditors in 2025, with a focus on domestic borrowing due to excess liquidity in the local economy.