The Philippine government’s total liabilities climbed to a record-high P17.71 trillion as of end-2025, reflecting increased borrowing to support development initiatives. Despite the rise, the Bureau of the Treasury (BTr) said the debt portfolio “remained resilient,” noting that the bulk of obligations continued to be sourced domestically.
Data released by the BTr on Tuesday showed that total outstanding debt as of December 2025 rose by 10.32 percent from P16.05 trillion at end-2024.
“The increase is due to the government’s strategic net issuance of debt instruments to fund development programs, as well as the valuation effects of peso depreciation against the US dollar and third currencies,” the BTr said in a news release.
Domestic creditors accounted for the majority of the debt stock, comprising 68.4 percent or P12.12 trillion of total liabilities. Foreign-currency denominated debt, meanwhile, amounted to P5.59 trillion.
“By prioritizing peso-denominated financing, which is predominantly held domestically, the government reduces exposure to exchange rate volatility. It also keeps interest payments within the domestic economy and provides Filipinos with a stable and secure investment option,” the BTr said.
The government raises funds through the issuance of various debt instruments, including treasury bonds (T-bonds), treasury bills (T-bills), retail treasury bonds (RTBs), as well as foreign currency-denominated debt papers and loans.
Domestic debt expanded by P1.19 trillion year-on-year in 2025, while foreign debt increased by P47 billion from P5.12 trillion in 2024.
According to the BTr, the national government recorded net domestic financing of P1.18 trillion last year, “demonstrating sustained investor confidence in government securities amid evolving market conditions.”
“External financing remained prudent and largely concessional. This results in a net external financing level of P317.02 billion from global bond issuances and program and project loans to support infrastructure, social reform, and agriculture and industry sectors,” it added.
Meanwhile, guaranteed obligations declined by 0.60 percent, or P2.09 billion, to P344.57 billion, driven by net repayments of both domestic and external guarantees. Guaranteed debt accounted for about 1.2 percent of gross domestic product, signaling minimal contingent debt risks.