Peso weakness drives PH debt to record P19.61 trillion

The Philippine government’s outstanding debt hit a new record high of P19.606 trillion as of the end of August, reflecting a 1.12% or P217.62-billion increase from the previous month, the Bureau of the Treasury (BTr) reported Wednesday.

The latest debt stock compares with P19.389 trillion as of end-July and P17.468 trillion as of end-August 2025. Year-to-date, it is up 10.72% or P1.90 trillion from P17.707 trillion recorded at the end of 2025.

Domestic debt came in at P13.239 trillion, up 0.99% or P130.37 billion from P13.109 trillion the past month. The increase was mainly due to net issuances of government securities worth P127.85 billion, along with the higher peso value of Onshore Dollar Bonds as the peso weakened against the US dollar.

“The increase reflects the cumulative effect of financing activities, together with valuation effects arising from exchange rate movements,” the BTr said in a statement.

READ: Is the Philippines’ record P19-trillion debt a cause for concern?

The Philippine peso depreciated to P62.209:$1 as of end-August from P61.327:$1 as of end-July. It has since traded at the P62:$1 level for most of September, and hit a fresh all-time low of P62.86:$1 on September 14, 2026, the 25th record low so far this year.

READ: How Filipinos are affected by the peso-dollar exchange rate

External debt, meanwhile, rose 1.39% to P6.367 trillion, mainly due to the P90.32-billion increase in the peso value of foreign-currency-denominated debt as the peso depreciated against the US dollar, along with the net availment of external loans of P2.86 billion.

This was partly offset by the P5.93-billion decrease due to movements in third currencies against the US dollar.

Year-to-date, external debt increased by 13.87% or P775.74 billion from P5.591 trillion as of end-December 2025, due to a combination of P452.92 billion in net external borrowings and P322.82 billion in adverse exchange rate movements.

Obligations guaranteed by the national government stood at P306.74 billion, up 0.20% or P0.60 billion from P306.14 billion the previous month, due to the P0.72-billion revaluation of external guarantees, which was partly offset by net repayments on external and domestic guarantees.

For 2026, the government plans to collect P4.81 trillion in revenues, but spend P6.793 trillion, leaving a gap that will largely be bridged by borrowing. The government’s 2027 spending program is proposed at P7.2 trillion, while the government plans to collect P5.21 trillion. — BM, GMA News

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