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Malacañang on Monday sought to allay public concerns over the country’s rising debt, saying the current level remains sustainable and consistent with the government’s fiscal strategy.
Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro noted that while the Philippines’ outstanding debt has climbed to nearly %u20B117 trillion, it is still within internationally accepted benchmarks.
Data from the Bureau of the Treasury show that the country’s national debt stood at %u20B116.92 trillion as of end-May 2025, up 0.99 percent from %u20B116.75 trillion in April. The increase is attributed to ongoing capital-raising efforts to support government spending priorities.
Castro emphasized that the Marcos administration's borrowing has been directed toward “growth-enhancing investments,” including infrastructure development, agriculture, education, healthcare, and social services.
“We can see the impact of these investments—support for farmers and fisherfolk, increased aid for our citizens,” Castro said during a press briefing, citing expanded programs and subsidies.
She also referred to the Department of Finance’s (DOF) assurance that the debt remains manageable, with the country’s debt-to-GDP ratio staying below the 70 percent threshold considered acceptable by international standards.
Despite the increase in the nominal debt figure, economic officials maintain that the country is on a solid fiscal footing and has sufficient buffers to absorb the current borrowing levels.
The government has reiterated its focus on fiscal consolidation and sustainable public finance, aiming to balance support for key sectors while managing long-term debt risks.
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