The country’s total outstanding debt surged to a new all-time high of P16.92 trillion as of end-May 2025, driven mainly by increased domestic borrowings to support government spending needs, according to the Bureau of the Treasury (BTr).
The figure marked a 0.99% rise from April’s P16.75 trillion total, with the Treasury attributing the climb to continued issuance of government securities. “The minimal increase was primarily driven by the successful net issuances of new domestic securities, which reflect sustained investor confidence in the Philippine economy,” the BTr said in its statement.
Domestic obligations accounted for the bulk of the debt at P11.78 trillion, a 1.64% increase from the previous month due to P190.87 billion in net issuances. This was slightly reduced by the stronger peso, which shaved off P0.91 billion from the value.
Meanwhile, the country’s foreign debt dipped by 0.46% to P5.14 trillion from P5.16 trillion in April. The decrease was attributed to P3.55 billion in net repayments and the appreciation of the peso, which lowered the peso value of offshore debt by P29.35 billion. However, currency fluctuations involving non-dollar currencies offset some of the gains, adding P9.14 billion to the tally.
The Treasury said that 69.6% of the total debt was sourced locally, a deliberate move to reduce exposure to foreign exchange volatility and foster the local capital market. “The government remains committed to its prudent debt management strategy, ensuring borrowings are strategically aligned with fiscal objectives and overall macroeconomic stability,” the BTr emphasized.
