PH Debt Hits Fresh Peak of P19.39 Trillion in July

MANILA, Philippines — The national government’s outstanding debt swelled to another all-time high in July, nearly hitting the ceiling set for this year amid fresh borrowings and the continued depreciation of the peso. Latest data from the Bureau of the Treasury (BTr) showed that the Philippine debt stock rose to P19.39 trillion as of end-July, already accounting for 98 percent of the government’s revised P19.765-trillion debt program for 2026. READ: PH gov’t debt seen surging to record high P21.5T in ’27 The ceiling had already been revised upward from the original P19.06 trillion as the government’s debt burden has yet to ease this year. The latest figure was 1.7 percent higher than the P19.07 trillion recorded at end-June and represented a 53-percent increase from the P12.79 trillion debt inherited by the Marcos administration at the start of its term in June 2022. The debt stock has also grown by nearly 10 percent, or P1.68 trillion, since the start of the year. Broken down, domestic debt rose by 2.11 percent to P13.11 trillion, driven by a P271.22-billion net issuance of government securities. Meanwhile, external debt edged up by 0.84 percent to P6.28 trillion amid P17.1 billion in net loan availments. Domestic obligations accounted for 67.6 percent of the total debt stock, while external borrowings made up the remaining 32.4 percent. The weaker local currency has also been increasing the peso value of the government’s foreign currency-denominated obligations. By July 30, the peso had depreciated to 61.290 against the dollar. READ: Peso sinks further past 62 to new low Already, the peso hit another all-time low at 62.565 as of early September and is expected to remain at the 62 level for the rest of the year amid renewed tensions in the Middle East. For 2027, the Marcos administration has programmed the national government’s outstanding debt to reach P21.479 trillion, based on an assumed exchange rate of 62 to the dollar. In terms of debt relative to the size of the economy, the government expects the national government debt-to-gross domestic product ratio to reach 64.9 percent this year before easing to 64.4 percent in 2027 and eventually declining to 63 percent by 2030. As of the first semester, the ratio stood at 66 percent. INQ