Manila: The national government’s total outstanding debt continued its downward trajectory, declining to PHP17.46 trillion as of end-September this year, the Bureau of the Treasury (BTr) said Thursday. The BTr reported that this figure represents a decrease from the PHP17.47 trillion recorded as of end-August 2025.

According to Philippines News Agency, the decrease in national debt reflects the government’s fiscal discipline, strategic borrowing strategy, and proactive liability management. These efforts are supported by steady market conditions and robust domestic investor confidence. The report highlights that domestic borrowings continue to make up more than 60 percent of the total debt, aligning with the government’s policy to mitigate foreign exchange risk while fostering the development of the domestic capital market.

The decrease in domestic debt, which fell by 0.9 percent to PHP11.97 trillion, can be attributed to the government’s actions of repaying more borrowings than it issued anew. Total repayments exceeded new issuances by PHP117.29 billion, which more than offset the PHP3.16 billion upward revaluation caused by peso depreciation against retail dollar bonds.

In contrast, external debt increased by 1.9 percent to PHP5.48 trillion as of end-September 2025, largely driven by a weaker peso. Meanwhile, the national government’s guaranteed obligations remained largely stable at PHP346.63 billion, reflecting a slight increase of 0.05 percent from the previous month. This was due to a PHP1.75 billion upward revaluation of guarantees resulting from peso depreciation, partially offset by PHP1.33 billion in combined net repayments and a downward adjustment from third-currency movements amounting to PHP0.25 billion.

“Overall, the September figures affirm the Marcos, Jr. administration’s strong fiscal discipline and proactive debt management, ensuring that government financing remains sustainable, strategic, and supportive of the country’s growth priorities,” the BTr stated.