Government resets debt narrative using IMF-aligned standard

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January 19, 2026 | 12:00am

MANILA, Philippines — The Marcos administration is reframing how it presents the country’s debt position by shifting to an International Monetary Fund (IMF)-aligned standard, a move the Department of Finance said would give a clearer and more credible picture of the Philippines’ fiscal health.

Finance Secretary Frederick Go said the IMF now considers a debt threshold of 70 percent of gross domestic product (GDP) as a key reference point for assessing fiscal sustainability, noting that the Philippines remains well below this level under the internationally accepted measure.

“The data point that we have been used to is the national government debt-to-GDP ratio. But the IMF standard is not national government debt but general government debt,” Go said.

He explained that public discourse has long focused on the national government debt-to-GDP ratio, which refers to borrowings incurred directly by the national government, including domestic and foreign loans used to finance the budget deficit. This ratio currently stands at around 63.1 percent as of the third quarter last year.

However, Go said multilateral institutions such as the IMF and World Bank assess fiscal health using general government debt.

Under the IMF framework, which consolidates the financial position of the national government, local government units and other public sector cash positions, the Philippines’ general government debt is significantly lower.

“Our general government debt is actually at 54 to 55 percent of GDP,” Go said, adding that going forward, the Department of Finance will highlight this figure when communicating with the media, investors and other stakeholders.

At the same time, Go said the government will continue to disclose the national government debt ratio during the transition period to avoid confusion, acknowledging that this is the metric the public has been accustomed to over the years.

Go emphasized that the shift aligns the Philippines with global practice, noting that institutions such as the IMF and the World Bank rely on general government debt when comparing countries and assessing fiscal risks.

Addressing concerns that the change could be perceived as an attempt to soften the country’s debt picture, Go rejected suggestions that the government was adjusting targets to suit its narrative.