Philippine Government Debt Reaches P16.68 Trillion, Marking a P51 Billion Increase

The total debt of the Philippine government reached a staggering P16.68 trillion by the end of March 2025, an increase of P51 billion compared to February, according to the latest data from the Bureau of the Treasury (BTr).

This growing debt burden translates to approximately P145,078 for each of the 115 million Filipinos, from infants to adults. This amount is more than six months’ worth of salary for a minimum wage earner in the National Capital Region (NCR).

Despite this rise in total debt, the government has managed to reduce its foreign debt, thanks in large part to the recent appreciation of the peso against the U.S. dollar. The strong peso has led to a reduction in the value of foreign loans, contributing to a slight decrease in foreign debt obligations.

From January to March 2025, the Philippine government allocated P342 billion toward servicing its debt. Of this, P101.022 billion was used for debt amortization, while the remaining P241 billion went to paying interest on outstanding loans.

One of the key developments in March was the P95.1 billion amortization of foreign debt, which further helped in reducing the total debt owed to international creditors.

Economists have noted that while the increase in total debt from February to March seems minimal, the fluctuations in the value of the peso played a significant role in mitigating the debt’s impact. This is seen as a positive sign for the country’s economic health amid growing concerns over rising government expenditures.

As the Philippines continues to grapple with its fiscal challenges, government officials are focusing on measures to enhance revenue collection and improve economic growth to ensure the country’s long-term financial stability.

The government is also closely monitoring the global economic landscape, with particular attention to exchange rate fluctuations that can significantly affect the country’s foreign debt obligations.