Manila: The Bureau of the Treasury (BTr) assured Wednesday that the national government’s total outstanding debt remains manageable, standing at PHP16.68 trillion as of end-March 2025.

According to Philippines News Agency, the BTr stated that domestic debt amounting to PHP11.38 trillion accounted for about 68.2 percent of the total debt stock, while the remaining 31.8 percent or PHP5.30 trillion are external obligations. The BTr emphasized that the financing mix helps mitigate exposure to external risks while taking advantage of the country’s liquid domestic market.

The BTr highlighted that the national government’s robust revenue performance in the first quarter of 2025 has enabled the government to finance key priority programs without imposing new taxes, keeping debt growth within sustainable levels. It also mentioned that the country’s economy is growing faster than its debt, supporting the administration’s fiscal consolidation efforts.

The BTr expressed confidence that the country is on track to achieve fiscal consolidation and aims to reduce the debt-to-GDP ratio to below 60 percent by 2028. The recent credit rating upgrades and reaffirmations underscore strong investor confidence in the country’s economic fundamentals, translating to greater demand for Philippine bonds, which is crucial for sustaining the country’s growth momentum.

The Marcos administration inherited a large debt due to the pandemic, amounting to approximately PHP12.79 trillion. However, the BTr noted improvements in the country’s debt statistics, with the national government debt-to-GDP ratio reduced to 60.7 percent in 2024, below the 70 percent international threshold. This was achieved by expanding the country’s GDP to PHP26.44 trillion in 2024.

The government’s Medium-Term Fiscal Framework aims to further reduce the national government debt-to-GDP ratio to 56.9 percent by 2028.