The national government’s outstanding debt is projected to hit P17.35 trillion by the end of 2025, data released by the Department of Budget and Management (DBM) showed.
According to the Budget of Expenditures and Sources of Financing (BESF) for fiscal year 2025, the expected debt level by the end of next year will be 8.08 percent higher than the projected P16.06 trillion by the end of this year.
Of the said amount, P11.98 trillion is estimated to come from domestic sources while P5.38 trillion will be accounted for by foreign financing.
The latest data released by the Bureau of the Treasury (BTr) showed that the national government’s outstanding debt as of end-May stood at P15.35 trillion.
The BESF also showed that the government’s gross borrowings for 2025 is programmed at P2.55 trillion.
This amount is slightly lower than the P2.57 trillion in gross borrowings set for 2024.
Of the said amount to be borrowed next year, P2.04 trillion will be accounted for by local financing while P507.41 billion will come from external sources.
Meanwhile, the national government’s debt service in 2025 is expected to total to P2.05 trillion.
The debt payments programmed for next year is 1.19 percent up from this year’s expected level of P2.03 trillion.
Of the said amount for 2025, P1.2 trillion will be for principal amortization obligations, while P848.03 billion will cover interest payments due next year.
The national government borrows from local and foreign lenders in order to plug its budget deficit.
In 2025, the government is projected to have a budget deficit of P1.54 trillion, equivalent to 5.3 percent of gross domestic product.
Revenues are seen to reach P4.64 trillion, while disbursements is programmed to amount to P6.18 trillion.
The DBM yesterday turned over the proposed 2025 National Expenditure Program amounting to P6.35 trillion to Congress.
Meanwhile, the BTr also raised P20 billion on Monday through its treasury bills auction.
The auction was 1.8 times oversubscribed, attracting P36 billion in total tenders, with the offer fully awarded.
The 91-, 182- and 364-day securities fetched average rates of 5.779 percent, 6.014 percent and 6.108 percent, respectively.
