PH dept climbs to record P19.66T in Sept.

The government’s outstanding debt climbed to a record P19.66 trillion in September, fueled by additional borrowings and the depreciation of the peso.

Total liabilities rose 0.27 percent from August, while increasing 12.63 percent from a year earlier, according to the latest data from the Bureau of the Treasury.

The September figure is now within striking distance of the Marcos administration’s projected P19.77-trillion debt by the end of 2026. Since the start of the year, the government’s debt stock has expanded by 11.03 percent, or nearly P2 trillion.

Domestic debt, which accounted for 67.39 percent of the total, inched up 0.07 percent month-on-month to P13.25 trillion. The Treasury said the government’s borrowings from local creditors exceeded repayments by P7.66 billion in September.

The weaker peso also added to the debt burden, increasing the peso value of the government’s dollar-denominated bonds issued in the domestic market by P1.12 billion.

The local currency depreciated to P62.601 against the US dollar at the end of September, from P62.209 a month earlier.

‘Valuation effects’

Since the beginning of the year, domestic debt has grown by 9.34 percent, or P1.13 trillion.

“The increase reflects the cumulative effect of financing activities, together with valuation effects arising from exchange rate movements,” the Treasury said.

Meanwhile, foreign debts increased by 0.70 percent to P6.41 trillion mainly because of the P40.12-billion increase in the peso value of external liabilities amid the local currency’s depreciation.

See Also

Chinese teachers exit PH ‘at their parents’ request’

The government also borrowed P9.27 billion more than it repaid in September.

The Treasury said external debts have increased by 14.67 percent or P820.43 billion since the start of 2026.

The government borrows from creditors at home and abroad to help finance its budget deficit, which is projected at P1.658 trillion, or 5.4 percent of gross domestic product, this year.

The government expects the national government debt-to-GDP ratio—a gauge of the state’s capacity to repay its borrowings—to reach 64.9 percent this year before easing to 64.4 percent in 2027 and eventually declining to 63 percent by 2030. But as of the first half, the ratio stood at 66 percent.