The Philippine government’s (NG) outstanding debt continued its downward trajectory, declining to P17.46 trillion as of end-September 2025 from P17.47 trillion in August, the Bureau of the Treasury (BTr) said Thursday.
The BTr attributed the continued decrease to the government’s sound fiscal discipline, strategic borrowing strategy and proactive liability management, supported by steady market conditions and robust domestic investor confidence.
Data, however, showed that on a year-on-year basis, the debt figure was P1.56 trillion, or 9.83 percent, higher than P15.89 trillion recorded in September 2024.
Domestic borrowings remained the majority, accounting for 68.6 percent of the total debt, consistent with the government’s policy of reducing foreign exchange risk while deepening domestic capital market development.
Domestic debt fell by 0.9 percent, or P114.13 billion, month-on-month to P11.97 trillion, as the government paid off more borrowings than it issued new ones.
Total repayments exceeded new issuances by P117.29 billion, more than offsetting the P3.16 billion upward revaluation from the peso depreciation against the retail dollar bonds.
The NG’s external debt slightly inched up by 1.9 percent, or P101.04 billion, to P5.48 trillion as of end-September 2025, largely due to the weaker peso.
This movement more than offset the P1.30 billion in net loan repayments and P2.1 billion in third-currency fluctuations.
NG guaranteed obligations remained broadly stable at P346.63 billion, increasing slightly by P0.17 billion, or 0.05 percent, from the previous month.
This was attributed to a P1.75 billion upward revaluation of guarantees due to peso depreciation, partially offset by a P1.33 billion in combined net repayments and a downward adjustment from third-currency movements amounting to P0.25 billion.
The BTr said the September debt figure affirms 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.
