The Philippine national government’s outstanding debt reached P17.71 trillion at the end of 2025, marking a 10.32 percent increase from the P16.05 trillion recorded the previous year, according to the latest data from the Bureau of the Treasury.
The rise in total obligations was attributed to increased government borrowing to support development initiatives, coupled with the depreciation of the Philippine peso against the U.S. dollar.
Domestic debt continues to comprise the bulk of the country’s liabilities, accounting for P12.12 trillion or 68.4 percent of the total.
The Treasury noted that this growth was driven by the net issuance of government securities through regular auctions and the offering of the 31st tranche of Retail Treasury Bonds.
External debt rose to P5.59 trillion, fueled by the issuance of new global bonds and the availment of official development assistance from international partners.
The Treasury also highlighted that unfavorable exchange rate movements led to an upward revaluation of foreign-denominated debt as the peso hit a low of P59.46 against the dollar.
While government economic managers maintain that the debt level remains manageable as long as economic growth outpaces borrowing, the country faced significant headwinds in 2025.
Gross domestic product growth fell short of projections last year, with officials citing frequent weather disturbances and a slowdown in government spending following a corruption scandal involving infrastructure projects as primary factors for the sluggish performance.
Despite the year-end figures, Finance Secretary Frederick Go expressed optimism for 2026, forecasting a GDP growth of at least 5 percent as the government implements more efficient spending and reforms aimed at economic recovery.