The Philippines’ total outstanding debt soared to ₱17.27 trillion by the end of June 2025, reflecting the government’s continued reliance on borrowing to support infrastructure and economic recovery efforts, according to the Bureau of the Treasury.
This marks a ₱348 billion or 2% jump from May’s level, driven by what the Treasury described as “strong investor demand for government securities.” Year-on-year, the debt rose by ₱1.78 trillion, representing an 11.5% increase.
Since January, the country’s debt has grown by ₱1.2 trillion or 7.6%, fueled by both domestic and foreign borrowing. Most of the debt remains sourced locally, with domestic liabilities accounting for ₱11.95 trillion or 69.2% of the total. The remaining ₱4.91 trillion, or 30.8%, is foreign debt.
“This strategy is consistent with the government’s goal to boost the local capital market while lowering foreign exchange risks and building investor trust in Philippine-issued securities,” the Treasury said in a statement.
Finance Secretary Ralph Recto previously explained that government borrowing plays a key role in funding economic initiatives. Based on recent data, the national debt translates to around ₱153,000 per Filipino.
Still, the rising debt has raised eyebrows. The country’s debt-to-GDP ratio climbed to 62% in March, up from 60.7% the previous quarter, largely due to slower economic growth. However, the Department of Finance reassured the public, pointing out that the 70% threshold is still considered acceptable by global standards.
