Yikes: Government Debt Breaks P18 Trillion for the First Time — And It's Still Climbing
The Philippine government's outstanding debt has officially breached the P18 trillion mark, hitting a record P18.13 trillion as of January 2026. That's up 2.41% from P17.707 trillion in December, and a staggering 11.16% higher than the P16.312 trillion recorded in January 2025.
The Bureau of the Treasury (BTr) says the spike is deliberate — the government frontloaded both domestic and external borrowings to lock in favorable interest rates before global market uncertainties push costs even higher. In short, they borrowed more now para makaiwas sa mas mahal na interest rates later.
Domestic debt makes up the bulk at P12.324 trillion — about 68% of the total — after a 1.72% monthly increase. The government issued P208.05 billion in new securities as it prioritized local funding sources. Meanwhile, external debt grew 3.89% to P5.809 trillion, driven by new global bonds and P191.02 billion in official development assistance from international partners.
The peso's depreciation also played a role, pushing up the value of foreign-currency denominated debt. The peso closed January at P58.86 to the dollar, slightly weaker than the P58.79 at the end of December 2025.
The BTr insists debt levels remain 'sustainable,' calling the borrowing strategy 'timely' to capitalize on favorable international credit conditions. But for ordinary Filipinos watching prices rise and the peso weaken, P18 trillion is a number that's getting harder and harder to ignore.
Source: GMA News / Philippine Daily Inquirer
