The country’s total outstanding debt climbed to ₱18.13 trillion at the end of January 2026, the Bureau of the Treasury (BTr) reported on March 4.
The figure was ₱426.15 billion higher, or a 2.41% increase from December 2025. Despite the rise, the BTr maintained that the debt level remains “sustainable” amid challenges in both domestic and global markets.
“The month-on-month increase mainly reflects the government’s strategy of frontloading domestic and external issuances to secure concessional financing terms ahead of global market uncertainties that can further raise interest costs,” the agency explained.
Breakdown of Debt:
- Domestic debt: ₱12.32 trillion (68% of total), up ₱208.52 billion or 1.72% from December; the increase was largely due to the net issuance of government securities worth ₱208.05 billion, which the BTr said reflects the government’s commitment to prioritize local funding sources.
- External debt: ₱5.81 trillion (32% of total), up ₱217.63 billion or 3.89%; the rise was driven by new global bonds and official development assistance from international partners.
- Peso depreciation against major currencies also added ₱26.61 billion to the external debt stock.
The Treasury emphasized that tapping domestic investors provides “a safe and stable investment option while supporting national development,” while external financing remains crucial for infrastructure and social programs.