The outstanding debt of the national government climbed to P17.56 trillion in October, rising by P106.78 billion from September as fresh borrowings and a weaker peso pushed obligations to a new record high.
Data from the Bureau of the Treasury showed that debt grew 0.61 percent month-on-month, driven by net issuances of both domestic and external liabilities and the revaluation impact of the peso’s depreciation against the US dollar.
Local debt remained the backbone of government financing, accounting for 69 percent of the total in line with the National Treasury’s strategy of leaning on peso-denominated borrowing to curb foreign-exchange risks and deepen the domestic bond market. Domestic obligations hit P12.05 trillion, up P72.43 billion as the government issued a net P70.65 billion in securities. The weaker peso also nudged the local valuation of retail dollar bonds higher by P1.78 billion.
Foreign debt also edged up, reaching P5.52 trillion, higher by P34.35 billion from the previous month. The increase was fueled by P8.25 billion in net loan availments and P26.10 billion in currency adjustments. Peso depreciation added a hefty P58.64 billion to external obligations, though this was partly offset by a P32.54 billion gain from the peso’s appreciation against other currencies.
Guaranteed obligations provided rare relief, slipping 0.64 percent to P344.41 billion after net repayments and lower valuations of non-dollar guarantees.
Despite the rising debt burden, the Treasury stressed that the government remains committed to “prudent debt and risk management,” ensuring borrowings support long-term fiscal sustainability and contribute to a stable, inclusive economic environment.
