The national government’s outstanding debt inched up to P17.56 trillion at the end of October 2025, rising by 0.61 percent month-on-month or P106.78 billion, the Bureau of the Treasury (BTr) reported on Tuesday, 2 December. Year-on-year, the debt level climbed by P1.541 trillion from P16.02 trillion in October 2024, marking a 9.62 percent increase.

The BTr said the slight month-on-month uptick was driven by the weaker peso against the US dollar and higher domestic and external borrowings.

Domestic debt — which accounted for 68.6 percent of the total, in line with the government’s strategy of prioritizing local currency financing — rose to P12.05 trillion, up P72.43 billion or 0.60 percent. Net issuances of government securities such as Treasury bills and bonds amounted to P70.65 billion, while peso depreciation added P1.78 billion to the local valuation of retail dollar bonds.

External debt likewise grew by 0.63 percent to P5.52 trillion, driven by P8.25 billion in net loan availments and P26.10 billion in upward foreign exchange adjustments. Peso depreciation against the US dollar added P58.64 billion, partially offset by a P32.54-billion gain from peso appreciation against other currencies — resulting in a net adjustment of P26.1 billion.

Government-guaranteed obligations fell to P344.41 billion, down P2.22 billion or 0.64 percent due to net repayments of P1.25 billion and lower foreign currency valuations amounting to P0.97 billion. The BTr noted that most external guarantees are denominated in non-USD third currencies.

The Marcos administration has heavily relied on borrowing to fund government priorities, bringing the debt-to-GDP ratio to 60.7 percent in 2024. While the level is elevated, economists generally view a 50-70 percent ratio as manageable for emerging economies — provided that borrowing is long-term, well-structured, and supported by strong revenue performance.

Since most of the country’s debt is domestic, interest payments circulate within the local economy rather than flowing overseas, helping reduce external risk. Longer-dated debt also gives the government more predictable repayment schedules, aiding in planning for infrastructure and social programs.

The peso has experienced sharp swings throughout 2025, hitting a record low of P59.17 per US dollar in November amid political and economic uncertainty. It has since begun to recover, supported by seasonal remittances and improving market sentiment.

The BTr reiterated that it remains committed to careful debt and risk management, ensuring that government borrowing stays consistent with long-term fiscal sustainability goals and supports a stable macroeconomic environment that promotes inclusive, broad-based growth for Filipinos.