The national government’s total outstanding debt climbed to a record ₱17.65 trillion at end-November, exceeding internal projections and signaling continued fiscal pressure as President Marcos ramps up borrowing to fund his budget.

On Wednesday, Jan. 7, the Bureau of the Treasury announced that the government’s debt increased by 0.5 percent from ₱17.56 trillion in October. Comparatively, it rose by nine percent or ₱1.6 trillion from ₱16.05 trillion in November 2024.

Based on the Treasury report, the increase was primarily driven by the net issuance of both domestic and external securities, even as a stronger peso provided modest cushion by reducing the valuation of foreign-denominated obligations.

The end-November figure also sits ₱290 billion above the Marcos administration’s full-year forecast of ₱17.36 trillion, underscoring the challenge of containing the debt pile amid a shifting macroeconomic backdrop.

Domestic debt, which accounts for nearly 69 percent of the total obligations, rose to ₱12.12 trillion, a 0.6 percent increase from the previous month.

The Treasury said the rise was largely the result of the government’s continued reliance on local securities to meet its financing needs.

But the bureau also explained that the domestic borrowing strategy is intended to bolster debt sustainability, as local currency obligations remain insulated from the volatility of international exchange rates.

Furthermore, interest payments on these instruments accrue to Filipino investors, thereby circulating income within the local economy, the agency added.

Meanwhile, external debt also edged higher, reaching ₱5.53 trillion from ₱5.52 trillion in October. While the government took on new foreign loans during the month, the overall impact was tempered by the peso’s performance.

The currency was valued at ₱58.729 against the United States dollar at the end of November, compared with ₱58.771 a month earlier.

However, the Treasury reported that the benefits of the peso’s appreciation against the greenback were partially eroded by the depreciation of the local currency against the Japanese yen and the euro.

The trajectory of the nation’s liabilities suggests a steep climb ahead. According to the 2026 Budget of Expenditures and Sources of Financing, the debt stock is projected to surpass ₱19 trillion by the end of next year, a nearly 10 percent jump from 2025 estimates.

To manage this, the government plans to adjust its borrowing mix. In 2026, the state expects to source 77 percent of its financing from the domestic market and 23 percent from abroad, a shift from the more domestic-heavy 81:19 ratio seen in 2025.