The Philippines ended 2025 with its highest debt level on record at P17.71 trillion, driven by continued government borrowing to cover budget needs and the peso’s depreciation against major currencies.
Based on the data released by the Bureau of Treasury (BTr) on Tuesday, the country shows outstanding national government debt grew by 10.32% or P1.66 trillion from the end-2024 level of P16.05 trillion.
The latest figure also overshot the government’s borrowing program ceiling of P17.36 trillion, signaling stronger financialneeds heading into 2026.
Treasury officials said the rise was mainly driven by the net issuance of debt instruments to support development programs, while currency movements inflated the peso value of foreign obligations.
From end-2024 to end-2025, the peso weakened against major currencies, including the US Dollar, Euro, and Japanese Yen, which raised the recorded value of foreign-denominated debt when converted to pesos.
Despite the jump, the BTr said the country’s debt structure remained “resilient,” with 68.4% of total borrowings sourced locally through peso-denominated instruments.
“By prioritizing peso-dominated financing, which is predominantly held domestically, the government reduces exposure to exchange rate volatility,” BTr said.
Meanwhile, RCBC chief economist Michael Ricafort said the stronger issuance reflected the need for additional national government borrowings to finance the wider budget deficit in recent months.
Ricafort also saidpart of the increase came from the weaker peso, which he linked to “recent political noise.”
For 2026, government projections in the Budget of Expenditures and Sources of Financing (BESF) place sovereign debt at P19.057 trillion.
Then, Finance Secretary Ralph Recto, now Executive Secretary, earlier said the country’s debt stock could balloon to “as much as P20 trillion” by the end of President Ferdinand Marcos Jr.’s term in 2028.
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