Philippine public debt 57.3% of GDP, debt servicing exceeds education budget

The Philippines is grappling with rising public debt and higher repayment expenses at a time when global trade uncertainties are exacerbating debt accumulation.

According to the Institute of International Finance's Global Debt Monitor report released on May 6, 2025, Philippine government debt increased to 57.3 percent of GDP in the first quarter of 2025 from 56.7 percent a year earlier.

In contrast, private-sector debts in the Philippines have decreased, with household and non-financial corporate debt-to-GDP ratios declining to 11.4 percent and 25.7 percent respectively as of end-March this year.

The report also highlighted that the Philippines' debt servicing budget averaged 6.2 percent of GDP from 2022 to 2024, surpassing budgets for sectors like education (3.6%), health (1.2%), and defense (1.1%).

This year, the Philippines will repay a record ₱2.05 trillion in debt, with principal amortization totaling over ₱1.2 trillion and interest payments exceeding ₱848 billion.

The government plans to borrow ₱2.55 trillion this year, primarily from domestic creditors through T-bills and treasury bonds, to mitigate foreign exchange risks.