By Justine Irish D. Tabile, Senior Reporter
THE NATIONAL Government’s (NG) total outstanding debt rose to a record-high P19.07 trillion as of end-June, amid higher domestic and external borrowings, the Bureau of the Treasury (BTr) said.
The latest data from the Treasury showed that the debt increased by 2.8% from P18.55 trillion at the end of May.
“The P518.98-billion increase from the end-May 2026 level of P18.55 trillion was driven by the net availment of both domestic and external borrowings to fund national development,” the BTr said.
The Treasury said the “favorable movement” of the peso tempered the month-on-month increase in debt levels.
The local currency strengthened by 21.1 centavos to P61.29 against the greenback as of end-June from its P61.501 finish as of end-May, the BTr said.
Year on year, outstanding debt went up by 10.41% from P17.27 trillion at end-June 2025, while it jumped by 7.67% from P17.71 trillion at end-2025.
The end-June debt stock was already slightly above the P19.06-trillion level projected for end-2026 under the 2026 Budget of Expenditures and Sources of Financing.
NG debt refers to the total amount owed by the Philippine government to creditors such as international financial institutions, development partner countries, banks, global bondholders and other investors.
“The NG continues to implement a borrowing mix in favor of domestic sources to reduce exposure to foreign exchange risks and support a more stable debt profile,” the Treasury said.
The bulk or 67.33% of the total debt stock came from domestic sources, while the remaining 32.67% consisted of external borrowings.
Domestic debt, which consisted almost entirely of government securities, edged up by 2.74% to P12.84 trillion at end-June from P12.5 trillion at end-May.
Year on year, it jumped by 7.43% from P11.95 trillion in the same period.
According to the BTr, the month-on-month increase in domestic debt was mainly due to the P342.93-billion net issuance of government securities. However, it was partly offset by a P600-million downward valuation adjustment on onshore dollar bonds due to the stronger peso.
Meanwhile, external debt rose by 2.92% to P6.23 trillion at end-June from P6.05 trillion at end-May.
Year on year, it jumped by 17.13% from P5.32 trillion in the same period.
“This (the increase) is mainly due to the net availment of external loans amounting to P223.11 billion,” it said.
“Meanwhile, the appreciation of the peso against the US dollar and third currencies reduced the peso value of foreign currency-denominated obligations by P46.46 billion,” it added.
External debt was composed of P3.19 trillion in global bonds and P3.04 trillion in loans.
The NG’s guaranteed obligations declined by 31.21% to P305.07 billion at end-June from P443.51 billion in the previous month.
“Net repayment of external and domestic guarantees totaled P470 million and P136.71 billion, respectively, while favorable foreign exchange movements further trimmed outstanding guarantees by P1.26 billion,” the BTr said.
Year on year, guaranteed obligations declined by 11.6% from P345.11 billion.
Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said the increase reflected the government’s continued borrowings to finance its fiscal deficit and ongoing infrastructure investments, as well as debt management operations.
“The current debt level remains manageable as long as the economy continues to grow and the government maintains fiscal consolidation,” he said in a Viber message.
“What matters is not just the size of the debt, but whether it is used to finance productive investments that support long-term growth and generate future revenues,” he added.
In the coming months, Mr. Rivera said the debt stock is likely to edge higher “broadly consistent with the NG’s medium-term fiscal consolidation strategy.”
Under the Philippine Development Plan 2023-2028 Midterm Update Results Matrices posted on May 20, the government expects the debt-to-gross domestic product (GDP) ratio at 60-63% in 2026.
In the first quarter, the debt-to-GDP ratio climbed to 65.2%, its highest level since 65.7% recorded in 2005.
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