The national government’s outstanding debt breached the ₱17-trillion mark in June, reaching a fresh record high of ₱17.27 trillion.

According to the latest data reported by the Bureau of the Treasury (BTr), the total debt stock bloated by 2.1 percent or ₱350 billion from the end-May figure.

Despite breaching the ₱17-trillion mark, the BTr said in a statement released on Wednesday, July 30, that the end-June figure “remains sustainable.” It blamed the record-high debt to on strong investor demand for government debt instruments.

Domestic borrowing accounted for ₱11.95 trillion or 69.2 percent of the total debt stock as of end-June. It inched up by 1.4 percent from the end-May figure.

Meanwhile, the remaining ₱5.32 trillion, or 30.8 percent, of the portfolio consists of the government’s debt from foreign sources, which increased by 3.5 percent compared to the previous month.

For this year, the government aims to source 80 percent of its debt from domestic creditors and 20 percent from foreign lenders.

Despite a slight leaning towards foreign borrowings, the BTr asserted that the current borrowing mix proves the country’s continued prioritizing borrowing from local lenders.

“This strategy is consistent with the government’s goal to boost the local capital market while lowering foreign exchange [forex] risks and building investor trust in Philippine-issued securities,” the BTr said.

The BTr said the Marcos administration’s “prudent debt management approach strategy reflects the [government’s] commitment to safeguarding fiscal sustainability, supporting inclusive growth, and ensuring that every peso borrowed is used to build a stronger economy for the Filipino people.”

Described as still “stable,” the government-guaranteed debt increased slightly to ₱345.1 billion as of end-June 2025.

“Despite inheriting a significant debt burden from the past administration of ₱12.79 trillion, the government has brought down the debt-to-GDP [gross domestic product] ratio to 60.7 percent in 2024 through prudent debt management,” the DOF said in a July 28 statement.

Relative to the country’s Association of Southeast Asian Nations (ASEAN) counterparts and other emerging market economies, the DOF noted that the Philippines’ debt is “positioned comfortably within the median range, having a general government (GG) debt-to-GDP ratio of 57.1 percent in 2024.”

It added that with the economy continuing to grow faster than its debt obligations, the government is on track to reduce the national government debt-to-GDP ratio to within 60 percent by 2028 or the end of the Marcos administration.

Gross borrowings stood at ₱1.59 trillion as of end-June, slightly higher than last year’s ₱1.57 trillion. These already accounted for 62.5 percent of the government’s total planned borrowings of ₱2.55 trillion for the year.

While the borrowings have already gone past the 50-percent mark in the first half, Recto assured this is not an early sign of exceeding the full-year borrowing target. The Philippines, he said, remains on track with its borrowing and fiscal targets.

National Treasurer Almanza also told the Manila Bulletin last week that, indeed, “we are on track with our borrowing program for the year. It was slightly higher because we raised most of our commercial issuance in the first quarter.”