Government Reduces Borrowings to ₱1.3 Trillion Amid Lower Domestic Debt Uptake

Due to lower borrowings from domestic lenders, the Marcos administration reduced its gross borrowings to ₱1.33 trillion for the first five months of 2025, down ₱90 billion from last year's ₱1.42 trillion.

According to the Bureau of the Treasury (BTr), the year-to-date figure was 6.3 percent lower than the government's gross borrowings in the same period last year.

As of end-May, gross borrowings accounted for 52.2 percent of the government's total planned borrowings of ₱2.55 trillion for the year.

Gross domestic debt dropped to ₱1.02 trillion, a 12.8 percent decrease from the previous year's ₱1.17 trillion, representing 76.7 percent of total borrowings.

The government aims for an 80:20 borrowing mix, with 80 percent from domestic sources and 20 percent from foreign sources.

No retail treasury bonds (RTBs) were issued this year, unlike the ₱584 billion issued a year ago. Instead, sales of fixed-rate treasury bonds increased to ₱629.2 billion, and short-dated treasury bills rose to ₱92.4 billion.

Fixed-rate treasury notes (FXTNs) worth ₱300 billion were issued in 2025, a change from zero issuance last year.

Foreign borrowings increased by 21.5 percent to ₱305.9 billion, accounting for 22.9 percent of total borrowings.

Global bonds settled during the period totaled ₱192 billion, a significant increase from zero in the previous year.

Program loans decreased to ₱85.2 billion, and project loans were reduced to ₱28.8 billion in the January–May period.

In 2024, the government's gross borrowings reached ₱2.56 trillion, driven by rises in both domestic and foreign debt.