The national government said it expects to reduce its outstanding debt — at P17.56 trillion as of end-July — by December, with the Bureau of the Treasury (BTr) set to pay off P814.2 trillion of maturing domestic bonds and as fundraising activities wind down.
The debt stock in July 2025 has risen by 11.9 percent since July 2024, when it stood at P15.69 trillion, while the year-to-date debt has grown by 9.4 percent from P16.05 trillion in the comparative year-earlier period.
From January to July, borrowings were tilted heavily toward the local debt market, with a financing mix of 76 percent domestic and 24 percent external borrowing, the BTr said.
Of the total, domestic obligations reached P12.11 trillion, rising by 12.6 percent year-on-year and by 10.8 percent from end-2024. External debt hit P5.46 trillion, up 10.5 percent year-on-year and 6.5 percent higher from end-2024.
“To mitigate exposure to foreign exchange risk, the government continued to favor domestic borrowings to deepen the local capital market, attaining a financing blend comprised of 76 percent domestic financing and 24 percent external borrowing in the first seven months of the year,” the BTr said in a statement released late Wednesday.
“The government will strictly adhere to its refined Medium-Term Fiscal Program to stay on track with its targets, ensuring fiscal prudence and long-term sustainability,” the BTr said.
“The Marcos Jr. administration remains steadfast in its commitment to prudent debt management by leveraging strong investor confidence in peso-denominated securities while ensuring that borrowings are at the lowest possible cost,” it said.
It added that borrowings support key priorities in education, healthcare, agriculture, and social services.
