MANILA, Philippines — The Philippine national government’s outstanding debt surged to an all-time high of ₱17.27 trillion in June, surpassing the ₱17-trillion threshold for the first time, according to data released by the Bureau of the Treasury (BTr) on Wednesday.
The 2.1% month-on-month increase was primarily driven by higher domestic borrowings aimed at addressing the country’s widening fiscal deficit.
Year-to-date, government debt has risen by ₱1.2 trillion or 7.6%.
Domestic debt, which made up 69.2% of the total, climbed by 1.4% to ₱11.95 trillion, attributed to strong investor demand for government securities such as Treasury bills and bonds.
Meanwhile, external debt rose by 3.5% to ₱5.32 trillion.
Despite the growing liabilities, the Treasury assured the public that the debt remains within “sustainable” levels.
The Marcos administration is aiming to attain an “A” credit rating during its term—an ambitious target that hinges on efforts to narrow the budget deficit.
The government reaffirmed its preference for local borrowing, saying this strategy helps develop the domestic capital market, minimizes foreign exchange risks, and builds investor confidence in Philippine securities.
For 2025, the government plans to borrow ₱2.6 trillion from both domestic and foreign sources to finance a projected budget gap of ₱1.6 trillion, equivalent to 5.5% of GDP.
However, data showed the budget deficit for the first half of the year had already reached ₱765.5 billion, exceeding the ₱760-billion ceiling by ₱4.8 billion or 0.63%.
This overshoot came as revenue collections fell short of the ₱2.28-trillion target by ₱20.4 billion (0.89%), and actual spending was also below the ₱3.04-trillion program by ₱15.6 billion (0.51%).
“The national government’s prudent debt management strategy reflects the Marcos administration’s commitment to ensuring fiscal sustainability,” the BTr emphasized.