The national government’s outstanding debt rose to P16.752 trillion, 0.41% higher than the P16.68-trillion debt stock recorded as of end-March.

The Bureau of the Treasury (BTr) data showed the government continued its fundraising efforts to support budgetary requirements.

BTr said the government “continues to follow a disciplined debt strategy, ensuring that borrowings support productive investments while keeping fiscal sustainability.”

Rizal Commercial Banking Corp. chief economist Michael Ricafort said in his commentary said the increasing debt pile was consistent with the continued budget deficit in recent months, thereby fundamentally increasing the need for the national government to borrow more to finance the budget deficit.

Nevertheless, the BTr said the state’s “fiscal deficit has also been steadily narrowing and is on track to drop to about 3.8% by 2028.”

“With the economy continuing to grow faster compared to its obligations, the country remains firmly on track to reduce the debt-to-GDP ratio to below 60% by the end of the President’s term,” the Treasury added.

The government’s domestic debt amounted to P11.59 trillion during the period, up 1.85% month-on-month due to “the strong demand for government securities, including P300 billion in benchmark bonds.”

Ricafort also cited the P300-billion 10-year Treasury notes issued in the latter part of April 2025, which was meant to fund the fiscal deficit.

The Treasury said the issuance of P300-billion notes “reflects the investors’ sustained confidence in the government’s fiscal program.”

“With economic fundamentals remaining sound, the country continues to enjoy strong market access at reasonable rates,” it said.

“The local currency’s appreciation also reduced the peso value of dollar-denominated domestic securities by P3.85 billion,” it added.

External debt, meanwhile, declined by 2.68% to P5.16 trillion by end-April, “primarily due to the P124.74 billion decrease in the peso value of external debt owing to peso appreciation, combined with net repayments of P58.28 billion.”

As of end-April 2025, the Treasury said domestic debt continued to account for the majority of the total debt stock at 69.2% while foreign obligations comprised 30.8%.

“This is in line with the national government’s thrust to reduce exposure to external vulnerabilities,” the BTr said.

The Treasury, moreover, said the state’s debt portfolio “remains resilient” as 91.7% of obligations carry fixed interest rates and 82% are classified as long-term.

“This structure helps insulate public finances from abrupt changes in interest rates and the market environment,” it said.