Government debt climbs to record P17.7 trillion

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February 4, 2026 | 12:00am

MANILA, Philippines — The national government’s outstanding debt climbed to a record high of P17.71 trillion at the end of 2025 as authorities tapped both domestic and external financing to fund development programs amid unfavorable currency movements.

Data released by the Bureau of the Treasury (BTr) showed that the latest debt figure rose by 10.3 percent from P16.05 trillion in 2024. It was also 0.3 percent higher than the P17.65 trillion as of November 2025.

The Marcos administration has added a total of P4.91 trillion to the country’s debt stock since taking office in July 2022.

“The increase is due to the government’s strategic net issuance of debt instruments to fund development programs, as well as the valuation effects of peso depreciation against the dollar and third currencies,” the BTr said.

The peso also weakened against major currencies between end-2024 and end-2025, depreciating against the dollar, euro and Japanese yen, which added to the peso value of foreign-denominated debt.

Despite the increase, the Treasury said the debt profile “remained resilient and aligned with long-term sustainability,” noting that 68.4 percent of borrowings were sourced domestically.

By prioritizing peso-denominated financing, the government sought to limit exposure to exchange rate volatility, keep interest payments within the domestic economy and provide Filipinos with stable investment options.

Domestic debt reached P12.12 trillion as of end-December, 10.9 percent higher than the P10.93 recorded in the same month a year ago.

The BTr said this was driven by the net issuance of government securities through regular auctions and the offering of Retail Treasury Bond Tranche 31.

External debt, meanwhile, rose by 9.2 percent to P5.59 trillion in 2025 from P5.12 trillion in 2024.

“This is driven by the issuance of new global bonds, net availment of official development assistance from international development partners as well as the upward revaluation of foreign currency-denominated debt brought about by unfavorable exchange rate movements,” the BTr said.

For the full year, the national government raised P1.18 trillion in net domestic financing, which the Treasury said demonstrated “sustained investor confidence in government securities amid evolving market conditions.”

External financing remained “prudent and largely concessional,” resulting in net external financing of P317.02 billion from global bond issuances as well as program and project loans to support infrastructure, social reform, agriculture and industry.

Meanwhile, outstanding guaranteed obligations inched down by 0.6 percent to P344.57 billion at end-2025, following net repayments of both domestic and external guarantees.

Guaranteed debt stood at around 1.2 percent of gross domestic product, indicating minimal contingent debt risks, according to the Treasury.