PH debt climbs to P18.49T as peso weakens

Due to the significant weakening of the peso against the US dollar and domestic security issues, the Philippine government’s debt increased in March, the Bureau of the Treasury (BTr) reported on Wednesday.

The latest recorded debt—P18.49 trillion—increased by 1.81% or P328.43 billion, from P18.16 trillion in February.

In a statement, the BTr said domestic debt grew by 0.44% or P55.4 billion from February 2026’s P12.48 trillion, reaching P12.53 trillion, driven by the net issuance of government securities amounting to P46.72 billion.

“In addition, peso depreciation contributed P8.68 billion to the peso value of foreign currency-denominated domestic securities,” it added.

Meanwhile, the Philippines' external debt climbed to P5.95 trillion, which added roughly P299.50 billion to the total debt's value, though the increase was slightly tempered by P2.55 billion in net repayments and favorable fluctuations in other foreign currencies.

A big reason for the surge is the peso's depreciation to P60.748 against the US dollar.

The BTr noted that this "currency fluctuation" automatically raises the cost of foreign-denominated debt, requiring more local funds to cover external obligations.

The government has ramped up the issuance of securities to fund a widening budget deficit.

BTr also said that the government needs to borrow money because the taxes it's collecting now aren't enough to cover the high costs of all the big infrastructure projects.

They pointed out that high interest rates and a strong US dollar have made it more expensive for countries, like the Philippines, to pay back their debts, further bloating the total debt stock.