The Philippine government now owes more money than ever before. As of the end of April 2025, the country’s total debt has reached a record-high of ₱16.75 trillion, according to the Bureau of the Treasury (BTr).
That’s a lot of money—more than 16 trillion pesos! This is ₱70 billion more than what the country owed in March 2025.
Why Did the Government Borrow So Much?
Just like how people borrow money to buy a house or pay for school, the government borrows money to help pay for important things like:
-
Schools and hospitals
-
Roads and bridges
-
Help for poor families
-
Projects that help grow the economy
But sometimes the government spends more than it earns. This is called a budget deficit. To cover this, they need to borrow money from banks, investors, and even other countries.
Is Borrowing Bad?
Not always!
The government says it is borrowing money carefully and using it for productive things that will help the country in the long run.
Even though the debt is growing, the Department of Finance and the Treasury say the Philippines is still in good shape because:
-
The economy is growing faster than the debt.
-
The government is trying to slowly shrink the budget deficit.
-
By 2028, they plan to reduce the debt-to-GDP ratio (how much the country owes compared to what it earns) to below 60%—which experts say is a healthy number.
Where Is the Debt Coming From?
The country’s debt is made up of two parts:
🇵🇭 Domestic Debt (money borrowed from within the Philippines):
-
₱11.59 trillion as of April
-
This went up because the government sold ₱300 billion worth of bonds (IOUs) to investors.
-
People still trust the government and are willing to lend it money, which is a good sign!
🌍 Foreign Debt (money borrowed from other countries or in foreign currency):
-
₱5.16 trillion as of April
-
This part actually went down by 2.68%!
-
Why? Because the Philippine peso got stronger, making the dollar-based debts cost less in pesos.
-
Also, the government paid back some of its foreign loans.
How Safe Is the Country’s Debt?
The Treasury says our debt is still safe and manageable because:
-
91.7% of our loans have fixed interest rates, which means we won’t be surprised by sudden price hikes.
-
82% of the loans are long-term, so we don’t have to pay them back right away.
-
Most of our debt is in pesos, so we’re less affected by changes in foreign currencies like the U.S. dollar.
This makes our debt strong and stable, even when the global economy changes.
What Does This Mean for Regular Filipinos?
Even if it sounds super technical, this news affects all of us! Here’s how:
-
If the government handles debt well, it can keep building schools, roads, and hospitals.
-
If it borrows too much, it might need to raise taxes or spend less on public services in the future.
-
A strong economy and smart borrowing mean more jobs, better services, and lower prices in the long run.
So while ₱16.75 trillion is a big number, the government says there’s a plan to manage it carefully—and to make sure it helps the country grow.
