Philippine debt seen to breach ₱21 trillion in 2027

The Philippines’ sovereign debt is expected to widen further, exceeding ₱21 trillion by the of 2027, budget documents showed.

Budget and Expenditures and Sources of Financing for the Fiscal Year 2027 showed the government is projecting that the total outstanding debt next year will amount to ₱21.48 trillion, higher than the projected ₱19.76-trillion debt level for 2026.

As of end-June 2026, the national government’s running debt stock already surpassed the ₱19-trillion mark, amounting to ₱19.065 trillion, up by ₱518.98 billion from ₱18.546 trillion as of end-May and higher then the ₱17.267 trillion sovereign debt level in end-June 2025.

With this, coupled with a weaker economic growth in the first half at 2.3%, the Philippines’ debt burden stood at 66% of gross domestic product (GDP) —a level seen in 1993, when it hit 66.9%, four years before the Asian Financial Crisis, and its highest highest in 22 years or since 2004, when it ended the year at 71.6% debt-to-GDP

Meanwhile, the bulk of the projected ₱21.48-trillion debt for 2027 will be sourced locally at ₱14.3 trillion, while the remaining ₱7.2 trillion will come from external sources.

Next year’s debt level project assumed a ₱62:$1 exchange rate by the end of 2027.

Also for next year, gross borrowings of the national government are expected to reach ₱3.304 trillion, the bulk or ₱2.389 trillion of which will be sourced locally while the remaining ₱914.982 billion will be from foreign sources.

Broken down, the government is eyeing to issue ₱2.329 trillion in fixed rate treasury bonds and ₱60 billion in treasury bills.

For next year’s foreign borrowings, the government projects program and program loans to reach ₱366 billion and ₱183 billion, respectively. Foreign bonds and other inflows, on the other hand, will amount to ₱365.982 billion. — RSJ, GMA News