Gov't eyes lower debt ratio by '28

Despite an increase in the Philippines' general government (GG) debt-to-gross domestic product (GDP) ratio to 57.1 percent in 2024, the Marcos Jr. administration is targeting to gradually lower this debt ratio to the 54-percent level by the end of 2028.

- By DERCO ROSAL

This was indicated in the national government’s (NG) midterm update on its Philippine Development Plan (PDP) 2023-2028—the current administration’s medium-term socioeconomic blueprint—published last Friday, Aug. 15, which retained its debt management strategies.

But the historically used NG debt-to-GDP ratio has been replaced by the GG debt ratio as a core indicator of the updated PDP 2023-2028 target “as it presents a more holistic view of the government's liabilities.”

The GG debt ratio is also the metric that credit rating agencies monitor for their ratings actions, as it excludes intragovernmental debt holdings.