National Government (NG) Data from the Ministry of Finance (BTR) shows that as of the end of June, outstanding debt jumped to a fresh P17.27 trillion P17.27 trillion.
BTR’s latest data shows that outstanding debt has risen 11.5% from P15.48 trillion in the same month of 2024.
Despite fresh heights, the Treasury said outstanding debts are “still sustainable.”
BTR said NG debt rose 2.1% in May’s P16.92 trillion due to “strong demand for government securities from investors.”
NG debt is the total amount owed by the Philippine government to creditors to international financial institutions, development partners, banks, global and other creditors Bond holders and other investors.
The total debt of total debt accounts for the total debt of domestic creditors, and the rest is attributed to foreign creditors.
Domestic debt composed of government securities fell from 10.57 trillion p10.57 trillion p11.95 trillion p11.95 trillion p11.95 trillion p11.95 trillion p11.95 trillion.
In the month, domestic borrowings ranged from May to the end of P11.78 trillion.
BTR said it prioritizes domestic borrowing because it “aligns with the government’s goal of reducing foreign exchange risks and building investor trust in securities issued in the Philippines.”
On the other hand, as of the end of June, foreign debt rose 8.3% from P4.91 trillion P4.3.32 trillion a year ago. It also increased by 3.5% From last month’s P5.14 trillion P5.14 trillion.
Foreign debt is mainly composed of P2.71 trillion P2.71 trillion P2.6 trillion P2.6 trillion loans.
Foreign debt securities include USD 22.29 trillion USD bonds, 252 million pesos of euro bonds, 59.32 billion yen bonds, 56.38 billion Islamic certificates, and 54.77 million pesos global bonds.
As of the end of June, NG guaranteed obligations “stayed” and increased by 0.4% from Phillipino pesos 343.65 billion a year ago to 345.1 billion pesos.
“Since the end of 2024, it has dropped by 4.33 billion pesos at the beginning of the yearTransplant basic department,” BTR said.
In a month, its end-stage level also increased by 0.4%.
Oikonomia Advisory and Research, Inc. “After NG issued a statement that effectively raised the country’s debt ceiling, Oikonomia Advisory and Research, Inc. economist Reinielle Matt M. Erece said in a Viber message: “New borrowing inflows appear to fit their spending further increases to drive growth and development.” ”
Earlier this month, Palace Publishing HousefIcer Clarissa A. Castro said the Ministry of Finance It is believed that 70% of GDP is the international threshold for sustainable lending, rather than the 60% corporate rule that multilateral banks often use by developing countries.
NG debt, as GDP share, rose to 62% at the end of the first quarter, the highest in 20 years. This is a huge jump from 60.7% released at the end of 2024.
“The national government’s prudent debt management approach strategy reflects the commitment of the Marcos (Jr.) government to maintain fiscal sustainability, support inclusive growth, and ensure that borrowings borrowed from each peso are used to build a stronger economy for the Filipino people,” BTR said.
NG’s outstanding debt is expected to reach P17.35 trillion by the end of 2025. – Arainosante
