The government's debt service burden surged to P97 billion in May, according to the Bureau of the Treasury (BTr), as reported by Philstar Biz. The figure represents a significant increase from previous months, driven by higher amortization and interest payments.
The BTr reported that the bulk of the payments went to interest on domestic and foreign debt, while principal amortization also rose. The uptick aligns with the Marcos administration's strategy of borrowing to fund infrastructure and social programs, though it adds pressure on fiscal resources.
Analysts note that rising debt payments could constrain government spending in other areas, especially as revenues face headwinds from slower economic growth. The national government's total debt has continued to climb, reaching new highs earlier this year.