The Philippines’ outstanding government debt climbed to P18.13 trillion in January 2026, as the administration frontloaded domestic and external borrowings to secure concessional financing terms ahead of global uncertainties, according to the Bureau of the Treasury (BTr).
Data released by the BTr showed that the national government’s debt rose by 2.41% from P17.707 trillion in December, and by 11.16% from P16.312 trillion in January 2025.
Despite the increase, the BTr said debt levels remain manageable.
“This level remains sustainable amid pressing challenges in the domestic and global landscape,” the agency said in a statement.
The month-on-month growth reflected the government’s strategy to frontload issuances to lock in more favorable financing terms before potential global market volatility could further drive up interest costs.
Domestic debt reached P12.324 trillion, accounting for 68% of the total debt stock. This marked a 1.72% increase from P12.116 trillion in December and an 11.19% rise from P11.084 trillion in January last year.
Government securities recorded a net incurrence of P208.05 billion compared to the previous month, as the administration prioritized local funding sources to maintain stable investment options. The valuation of foreign currency-denominated domestic securities stood at P0.47 billion.
External debt, meanwhile, increased by 3.89% to P5.809 trillion from P5.591 trillion in December, and by 11.10% from P5.228 trillion a year earlier.
The BTr attributed the rise in external obligations to the issuance of new global bonds and P191.02 billion in net availments of official development assistance from international development partners. It also cited the upward revaluation of foreign currency-denominated debt due to peso depreciation.
The peso opened the year at P58.841 against the US dollar on January 2 and closed January at P58.86, compared to P58.79 at the end of December 2025.
“The recent increase in external borrowings was a strategic and timely approach to capitalize on a narrow window of favorable international credit conditions,” the BTr said.
