This report provides a focused assessment of the National Government debt as well as an outlook for the coming years. The analysis places emphasis on the delicate balancing act involving strengthening post-pandemic recovery, maintaining favorable macroeconomic conditions, and ensuring long-term fiscal sustainability. Pandemic-era borrowing pushed the country’s debt-to-GDP ratio above 60%, a threshold widely regarded as a prudential ceiling for emerging markets. While economic growth has exhibited robust growth since mid-2021, the continued increase in government spending, along with persistent deficits, rising interest payments, and weaker-than-expected revenue growth has sorely limited progress toward fiscal consolidation. Using the IMF’s Debt Sustainability Analysis framework and the projections from the DBCC and CPBRD, the report projects that the debt-to-GDP ratio still has the potential to fall below 60% by 2027 under baseline conditions. This outcome, however, is contingent on favorable macroeconomic assumptions, including strong growth, subdued inflation, and significantly greater fiscal discipline. Risks such as rising interest rates, exchange rate depreciation, and slowing economic growth may prolong the timeline for consolidation. The report emphasizes the need for a credible fiscal consolidation strategy focused on disciplined expenditure management rather than one that is focused on tax expansion. In the absence of institutionalized budget rules and timely reform, the Philippines risks deeper macroeconomic imbalances and reduced fiscal flexibility.