The country’s total outstanding debt has ballooned to P17.56 trillion as of the end of July this year, which, however, is not causing any alarm on the part of the government.
The Bureau of the Treasury (BTr) said the national government’s total outstanding debtis expected to decline as the government pays off P814.2 billion worth of domestic bonds by December 2025 and fundraising activities wind down.
“The national government’s borrowings are used to support key infrastructure and development initiatives in education, healthcare, agriculture, and social services, among other priorities of the Marcos Jr. administration,” the BTr said.
BTr data showed that the government continued to favor domestic borrowings during the period as the financing blend was comprised of 76 percent domestic financing and 24 percent external borrowing.
According to BTr, this aims to mitigate exposure to foreign exchange risk.
“The Marcos, Jr. administration remains steadfast in its commitment to prudent debt management by leveraging strong investor confidence in peso-denominated securities while ensuring that borrowings are at the lowest possible cost and support fiscal sustainability, inclusive growth, and a stronger Philippine economy,” the BTr said.
“The government will strictly adhere to its refined Medium-Term Fiscal Program to remain on track with its targets, ensuring fiscal prudence and long-term debt sustainability,” it added.
BTR PHOTO