Philippines Maintains National Debt at Sustainable P17 Trillion Level

The Philippines' national debt has approached P17 trillion but is considered sustainable by government officials, including Malacañang and the Department of Finance, as it remains below the international debt-to-GDP threshold of 70 percent. The current debt-to-GDP ratio is around 62 percent, with the government emphasizing that borrowings have been strategically directed toward growth-enhancing investments in infrastructure, education, agriculture, health, and social services. Despite the debt increase, the Treasury highlighted strong investor confidence and a preference for domestic financing to mitigate foreign exchange risks. The Marcos administration, which inherited a P12.79 trillion debt, has focused on managing the debt through prudent strategies and economic growth. Officials stressed that the borrowings support vital programs benefiting farmers, fisherfolk, and other sectors. Overall, the government remains committed to sustainable debt management aligned with fiscal responsibility and development goals.