Manila: The country's total outstanding debt is expected to go down towards the end of the year as the National Treasury pays off major loans and borrows less. In a statement late Wednesday, the Bureau of the Treasury (BTr) said the national government's total outstanding debt, which amounted to PHP17.56 trillion as of end-July 2025, is expected to decline as the government pays off PHP814.2 billion worth of domestic bonds by December 2025 and fundraising activities wind down. According to Philippines News Agency, the BTr stated that the national government's borrowings are used to support key infrastructure and development initiatives in education, healthcare, agriculture, and social services, among other priorities of the Marcos Jr. administration. BTr data showed that the government continued to favor domestic borrowings during the period as the financing blend was comprised of 76 percent domestic financing and 24 percent external borrowing. According to BTr, this aims to mitigate exposure to foreign exc hange risk. "The Marcos, Jr. administration remains steadfast in its commitment to prudent debt management by leveraging strong investor confidence in peso-denominated securities while ensuring that borrowings are at the lowest possible cost and support fiscal sustainability, inclusive growth, and a stronger Philippine economy," the BTr said. The BTr added that the government will strictly adhere to its refined Medium-Term Fiscal Program to remain on track with its targets, ensuring fiscal prudence and long-term debt sustainability.