The Philippine government’s outstanding debt reached a new record of P19.606 trillion as of end-August 2026, driven partly by the continued depreciation of the peso and additional government borrowing.
Data from the Bureau of the Treasury (BTr) showed that the country’s debt stock increased by P217.62 billion, or 1.12 percent, from P19.389 trillion recorded at the end of July.
Compared with the P17.468 trillion debt recorded in August 2025, the latest figure was also significantly higher. Since the end of 2025, when outstanding debt stood at P17.707 trillion, the total has increased by approximately P1.90 trillion or 10.72 percent.
Domestic debt rises to P13.24 trillion
Domestic obligations accounted for the majority of the government’s debt, reaching P13.239 trillion in August, up by P130.37 billion from P13.109 trillion a month earlier.
According to the Treasury, the increase was primarily attributed to net issuances of government securities amounting to P127.85 billion, along with valuation changes in Onshore Dollar Bonds caused by the weaker peso.
The BTr said the overall increase in debt reflected both government financing activities and the impact of foreign exchange movements.
The Philippine peso weakened to P62.209 against the US dollar at the end of August, compared with P61.327 at the end of July.
The local currency remained around the P62-to-the-dollar level for much of September and touched a record low of P62.86 to $1 on September 14.
External debt reaches P6.37 trillion
Meanwhile, the government’s external debt increased by 1.39 percent to P6.367 trillion.
The increase was largely attributed to the weaker peso, which raised the local-currency value of foreign-denominated obligations by P90.32 billion. The government also recorded P2.86 billion in net external loan availments.
These increases were partially offset by a P5.93-billion reduction resulting from movements of other currencies against the US dollar.
Since the end of 2025, external debt has increased by P775.74 billion, or 13.87 percent, from P5.591 trillion. The increase reflected P452.92 billion in net foreign borrowings and P322.82 billion arising from unfavorable foreign exchange movements.
Government-guaranteed obligations, meanwhile, stood at P306.74 billion, slightly higher than the P306.14 billion recorded in July.
Borrowing to bridge budget gap
The government expects to collect P4.81 trillion in revenues in 2026, while expenditures are programmed at P6.793 trillion. The resulting financing gap is expected to be covered largely through borrowing.
For 2027, the government has proposed a P7.2-trillion spending program against projected revenues of P5.21 trillion.
The latest debt figures highlight the effect that exchange-rate movements can have on the government’s foreign-denominated obligations, as a weaker peso increases their value when converted into local currency.
Source: GMA News Online, citing data from the Bureau of the Treasury.
