Sovereign debt at P16.68T, gov't says manageable

The Philippines' sovereign debt balance reached a new record high of P16.68 trillion as of March 2025, according to data released by the Bureau of the Treasury.

Despite this growth, the government maintains that its debt remains manageable with a prudent financing mix of 68.2% domestic and 31.8% foreign sources.

The increase in domestic debt was mainly due to net issuance of domestic securities worth P157.86 billion, offset partially by currency appreciation effects, which reduced the overall valuation by P2.03 billion.

External debt decreased slightly to P5.30 trillion from P5.41 trillion in February, primarily due to local currency appreciation and net repayment of external loans.

The government's robust revenue performance in Q1 2025, growing by 6.9% year-on-year, has enabled it to finance key programs without imposing new taxes, keeping debt growth within sustainable levels.

With the economy expected to grow faster than its obligations, the country aims to reduce the debt-to-GDP ratio below 60% by 2028 as part of its Medium-Term Fiscal Framework.