THE Philippines’ total debt has risen to P16.68 trillion as of March 2025, the Bureau of the Treasury (BTr) reported on Wednesday.
Of the total, P11.38 trillion (68.2%) came from local sources, while P5.30 trillion (31.8%) came from foreign loans.
Despite the increase, the BTr said the debt level is still manageable. It credited strong revenue collection in early 2025 for helping fund government programs without new taxes.
The BTr also noted that the economy is growing faster than the debt, helping keep the country on track to bring the debt-to-GDP ratio below 60 percent by 2028.
The Marcos administration inherited PHP12.79 trillion in debt from the pandemic era. While the debt continues to rise, the government says it has improved the overall picture by growing the economy to P26.44 trillion in 2024, lowering the debt-to-GDP ratio to 60.7 percent.
The government plans to bring this ratio down further to 56.9 percent by 2028 under its Medium-Term Fiscal Framework.
Recent credit rating affirmations, the BTr said, show investor trust in the country’s economy and allow the government to continue borrowing at reasonable rates.
Still, officials emphasized the importance of sound fiscal management to avoid risks from rising global uncertainties. (PNA)