New high: Gov’t debt tops P18 trillion
The national government’s outstanding debt continued its climb at the start of 2026, reaching a fresh peak of P18.13 trillion, driven by front-loaded borrowings ahead of mounting global market uncertainties.
According to the Bureau of the Treasury (BTr), the government’s total liabilities as of end-January were 2.41-percent higher than the previous month, when the debt had already surpassed the Marcos administration’s full-year borrowing program for 2025.
Year-on-year, the P18.13 trillion figure is 11.15-percent higher.
This means that each of the 112.7 million Filipinos, based on the Philippine Statistics Authority’s latest population data, owes around P160,800 as of this writing.
But the BTr assured that the level “remains sustainable amid pressing challenges in the domestic and global landscape.”
“The month-on-month increase mainly reflects the government’s strategy of front-loading domestic and external issuances to secure concessional financing terms ahead of global market uncertainties that can further raise interest costs,” the BTr said.
Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., agreed with this sentiment.
“For now, Philippine debt remains manageable because growth is holding up and debt servicing is still affordable,” he said, explaining that keeping debt on a sustainable path means borrowing wisely, spending on growth and strengthening revenues.
“Debt will likely continue rising in the next few months due to infrastructure spending and refinancing needs, but the real risk isn’t higher debt—it’s slower growth or higher interest rates,” he added.
Front-loaded borrowings
Domestic borrowings rose 1.72 percent to P12.32 trillion in January, accounting for the bulk of the total outstanding debt. This huge share is in line with the government’s plan to continue favoring local sources over foreign loans to minimize exposure to currency risks.
This is a “commitment to prioritize domestic sources of funding, providing Filipinos with a safe and stable investment option while supporting national development,” the BTr noted.
Meanwhile, external debt increased 3.89 percent to P5.81 trillion, largely due to the issuance of triple-tranche US dollar bonds in late January, which raised $2.75 billion. On top of this, the government obtained additional official development assistance amounting to P191.02 billion.
“The recent increase in external borrowings was a strategic and timely approach to capitalize on a narrow window of favorable international credit conditions. The successful issuance of the triple-tranche global bonds highlighted sustained investor confidence in the Philippines’ creditworthiness and long-term growth prospects,” the BTr said.
Although January’s debt marked a fresh peak, it is still within the Marcos administration’s full-year borrowing program of P19.06 trillion for 2026.
Of this, the government plans to borrow P2.68 trillion—P627.1 billion from external sources and P2.05 trillion from domestic creditors—maintaining a domestic-to-foreign debt ratio of 77:23.
These borrowings are intended to cover a projected budget deficit of P1.65 trillion, or 5.3 percent of the country’s gross domestic product.
Separately, S&P Global Ratings reported on Tuesday that they project the Philippines’ sovereign commercial borrowings to reach $40.4 billion (about P2.37 trillion) this year. If realized, this would make the country the third-largest borrower in Southeast Asia and 11th in the broader Asia-Pacific region.
