The depreciation of the peso has not only driven up prices for imported goods for Filipino consumers but has also contributed to the substantial increase in the government's debt burden.

According to the Bureau of the Treasury, the peso's “considerable” weakening, reaching a low point not seen in over a year, contributed to an additional P113.1 billion increase in the government's debt last April.

READ: Government debt crosses P15-trillion mark in April

The Treasury said that the majority of this additional debt, approximately P109.31 billion, came from the government's foreign debt denominated mostly in US dollars.

In April, the peso's depreciation against the dollar even exceeded the amount the government repaid on its foreign loans, amounting to P32.91 billion.

Nonetheless, the Treasury noted that while the peso's devaluation led to an increase in total foreign debt, this was somewhat counterbalanced by the valuation gain of P15.91 billion on foreign debts denominated in other foreign currencies.

The weak peso has also influenced the government's local debt, given that certain loans from Filipino creditors are denominated in US dollars.

Although the increase in local debt caused by the strong dollar was not as significant as the rise in foreign debt, it still added an extra burden of P3.78 billion.

In April, the peso weakened significantly against the US dollar, with the average exchange rate dropping to 57.583 from 55.497 in the same month last year, or a decrease of 2.08.