National Government’s Debt Continues Downward Trajectory

The national government’s total outstanding debt continued to decline, easing to PHP17.46 trillion as of end-September 2025 from PHP17.47 trillion the previous month, according to the Bureau of the Treasury (BTr), as reported by the Philippine News Agency (PNA).

The September figures affirm the Marcos Jr. administration’s strong fiscal discipline and proactive debt management, according to the BTr. (Photo: Ryomaandres Wikimedia Commons) 

“The continued decrease reflects the government’s sound fiscal discipline, strategic borrowing strategy, and proactive liability management, supported by steady market conditions and robust domestic investor confidence,” the BTr said in a statement.

Domestic borrowings accounted for more than 60% of the total debt, consistent with the government’s policy of minimizing foreign exchange risk while deepening the domestic capital market.

Domestic debt fell 0.9% to PHP11.97 trillion, as repayments outpaced new issuances by PHP117.29 billion, offsetting a PHP3.16 billion upward revaluation from the peso’s depreciation against retail dollar bonds.

External debt, meanwhile, rose 1.9% to PHP5.48 trillion as of end-September, largely due to the weaker peso.

The national government’s guaranteed obligations remained broadly stable at PHP346.63 billion, up 0.05% from August.

The increase was attributed to a PHP1.75 billion upward revaluation of guarantees due to peso depreciation, partially offset by PHP1.33 billion in combined net repayments and a PHP0.25 billion downward adjustment from third-currency movements.

“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 said.