Govt debt hits P17T, driven by domestic issuances

As of end-May 2025, the government's outstanding debt hit a new record high of nearly P17 trillion, driven by successful net issuances of domestic securities and partially offset by the valuation effects of a stronger peso.

State liabilities increased by 0.99 percent month-on-month according to data from the Bureau of the Treasury (BTr), with domestic debt amounting to PHP11.78 trillion and foreign obligations at PHP5.14 trillion as of end-May.

Total domestic debt reached PHP11.78 trillion, up by PHP190.87 billion from the previous month, while total foreign debt declined slightly due to a stronger peso and net payments of foreign debt.

The BTr noted sustained investor confidence in the Philippine economy supported these new security issuances, reflecting a strong bias for domestically sourced financing which helps mitigate foreign exchange risks and strengthen the local capital market.

Despite the record-high debt levels, the government remains committed to its prudent debt management strategy, ensuring borrowings are strategically aligned with fiscal objectives and overall macroeconomic stability.