PH debt increases to P18.55 trillion

National

THE Philippines' outstanding national government debt climbed to a record-high ₱18.55 trillion as of the end of May 2026, reflecting the government's continued reliance on domestic borrowing to finance public programs despite global market uncertainty.

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‎Based on the latest data released by the Bureau of the Treasury (BTr) on Thursday, July 2, the country's total outstanding debt increased by ₱76.1 billion, or 0.4 percent, from ₱18.47 trillion recorded at the end of April.

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In a report by Manila Bulletin, ‎the Treasury said the increase was primarily driven by the government's issuance of more local bonds than it repaid during the month to support various state programs.

The Treasury added that the borrowing spree continued as planned despite capital market swings triggered by the ongoing Middle Eastern conflict.

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‎“Meanwhile, the appreciation of the peso against the US dollar and other foreign currencies helped temper the increase,” the Treasury said.

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‎Domestic debt accounted for 67.4 percent of the country's total obligations, rising to ₱12.50 trillion from ₱12.42 trillion in April. The increase was largely attributed to the ₱80.2 billion net issuance of government securities, while the stronger peso helped reduce the valuation of onshore dollar bonds.

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‎Meanwhile, external debt slightly declined to ₱6.05 trillion from ₱6.06 trillion in April.

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‎The BTr attributed this modest contraction to the “significant peso appreciation against the US dollar and other foreign currencies.” According to the Treasury, the stronger peso reduced the value of foreign debt by ₱18.91 billion, offsetting the ₱14.90 billion in net external debt availments during the period.

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‎Government-guaranteed obligations also increased significantly, reaching ₱443.5 billion as of end-May, a 15.7 percent rise from ₱383.2 billion in April. The increase was mainly due to the issuance of ₱61.6 billion in new domestic guarantees, with only minimal reductions from favorable revaluation effects and repayments on external guarantees.

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‎As the government manages its debt portfolio, the Treasury said it continues to prioritize domestic financing to strengthen local capital markets while minimizing exposure to foreign exchange risks.

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‎From ₱17.71 trillion at the end of 2025, the national government's outstanding debt has already grown by 4.7 percent year-to-date.

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‎Based on the Budget of Expenditures and Sources of Financing for Fiscal Year 2026, the national government's total outstanding debt is projected to surpass ₱19 trillion by the end of the year, representing a 7.6 percent increase from the 2025 level.(Rojen Ann De la Cruz, PIT Comm Intern)