National government debt climbs to PHP 19.39 trillion

MANILA — The national government’s outstanding debt rose to PHP 19.39 trillion at the end of July 2026 as new borrowing and a weaker peso increased the value of domestic and foreign obligations, the Bureau of the Treasury reported on September 3.

The debt stock grew by 1.70%, or PHP 323.53 billion, from PHP 19.07 trillion at the end of June 2026.

The increase matters to taxpayers because government revenue must eventually cover debt-service costs alongside public services, while peso depreciation raises the local-currency value of foreign obligations even without additional borrowing.

Whether the higher debt ultimately supports public welfare will depend on how the government uses borrowed funds and whether it can manage repayments without placing excessive pressure on future budgets.

Net domestic and external borrowing contributed to the July increase.

Foreign exchange movements also raised the peso value of obligations denominated in United States dollars and other currencies.

Domestic obligations comprised 67.61% of the total debt stock, while external debt accounted for 32.39%.

Domestic debt increased by 2.11%, or PHP 271.33 billion, to PHP 13.11 trillion at the end of July from PHP 12.84 trillion a month earlier.

The domestic increase was mainly caused by PHP 271.22 billion in net issuances of government securities.

A slight upward revaluation of onshore dollar bonds accounted for the remaining movement in domestic debt.

External debt reached PHP 6.28 trillion at the end of July, up 0.84%, or PHP 52.20 billion, from PHP 6.23 trillion at the end of June.

The government recorded PHP 17.10 billion in net external loan availments during the period.

Depreciation of the peso against the United States dollar and third currencies increased the peso value of foreign currency-denominated obligations.

The peso weakened to PHP 61.327 per USD 1 at the end of July from PHP 61.290 per USD 1 at the end of June.

National government-guaranteed obligations amounted to PHP 306.13 billion at the end of July, increasing by 0.35%, or PHP 1.06 billion, from PHP 305.07 billion in June.

These guarantees represent contingent obligations that may become payable by the government if the covered borrowers cannot meet their commitments.

The monthly increase in guaranteed debt was primarily caused by a PHP 1.47-billion revaluation of external guarantees.

Net repayments of PHP 0.26 billion in external guarantees and PHP 0.15 billion in domestic guarantees partly offset the revaluation.

Treasury data showed total outstanding debt rising from PHP 17,563.52 billion in July 2025 and PHP 17,707.81 billion in December 2025 to PHP 19,065.69 billion in June 2026 and PHP 19,389.21 billion in July 2026.

The July total was PHP 1,825.69 billion higher year on year, PHP 1,681.40 billion higher than at the end of 2025 and PHP 323.53 billion higher month on month.

These movements represented increases of 10.39% year on year, 9.50% year to date and 1.70% from June.

Domestic debt increased from PHP 12,108.42 billion in July 2025 and PHP 12,116.25 billion in December 2025 to PHP 12,837.84 billion in June 2026 and PHP 13,109.17 billion in July 2026.

The domestic balance grew by PHP 1,000.74 billion year on year, PHP 992.91 billion year to date and PHP 271.33 billion month on month.

These changes were equivalent to increases of 8.26% year on year, 8.19% year to date and 2.11% from June.

Domestic loans stood at PHP 0.16 billion in July 2025, December 2025, June 2026 and July 2026, producing zero changes and growth rates of 0.00% across all three comparison periods.

Direct domestic loans, loans availed of by agencies and other national government domestic loans each remained at PHP 0.16 billion in all four reporting periods, with zero changes and growth rates of 0.00%.

Borrowings from the Bangko Sentral ng Pilipinas and assumed domestic loans remained at PHP 0.00 billion throughout the four periods.

Government securities increased from PHP 12,108 billion in July 2025 and PHP 12,116.10 billion in December 2025 to PHP 12,837.68 billion in June 2026 and PHP 13,109.01 billion in July 2026.

The government securities balance rose by PHP 1,000.74 billion year on year, PHP 992.91 billion year to date and PHP 271.33 billion month on month.

These increases corresponded to growth rates of 8.26%, 8.19% and 2.11%, respectively.

External debt increased from PHP 5,455.10 billion in July 2025 and PHP 5,591.56 billion in December 2025 to PHP 6,227.85 billion in June 2026 and PHP 6,280.05 billion in July 2026.

The external balance was PHP 824.95 billion higher year on year, PHP 688.49 billion higher year to date and PHP 52.20 billion higher month on month.

These movements represented increases of 15.12% year on year, 12.31% year to date and 0.84% from June.

External loans rose from PHP 2,666.07 billion in July 2025 and PHP 2,769.08 billion in December 2025 to PHP 3,039.94 billion in June 2026 and PHP 3,085.27 billion in July 2026.

The external loan balance increased by PHP 419.20 billion year on year, PHP 316.19 billion year to date and PHP 45.33 billion month on month.

These changes translated into growth rates of 15.72%, 11.42% and 1.49%, respectively.

Direct external loans recorded the same balances, differences and percentage changes because assumed external loans remained at PHP 0.00 billion throughout the periods.

External loans availed of by government agencies increased from PHP 2,657.08 billion in July 2025 and PHP 2,760.86 billion in December 2025 to PHP 3,032.18 billion in June 2026 and PHP 3,077.26 billion in July 2026.

Agency-availment balances increased by PHP 420.18 billion year on year, PHP 316.40 billion year to date and PHP 45.08 billion month on month.

These movements represented increases of 15.81%, 11.46% and 1.49%, respectively.

External loans relent to government-owned and controlled corporations declined from PHP 8.99 billion in July 2025 and PHP 8.22 billion in December 2025 to PHP 7.76 billion in June 2026 before rising to PHP 8.01 billion in July 2026.

The amount was PHP 0.98 billion lower year on year and PHP 0.21 billion lower year to date, but PHP 0.25 billion higher month on month.

These movements represented declines of 10.90% year on year and 2.55% year to date, followed by a 3.25% monthly increase.

External debt securities rose from PHP 2,789.03 billion in July 2025 and PHP 2,822.48 billion in December 2025 to PHP 3,187.92 billion in June 2026 and PHP 3,194.78 billion in July 2026.

The securities balance increased by PHP 405.75 billion year on year, PHP 372.30 billion year to date and PHP 6.86 billion month on month.

These movements corresponded to increases of 14.55%, 13.19% and 0.22%, respectively.

United States dollar bonds and notes increased from PHP 2,365.11 billion in July 2025 and PHP 2,389.66 billion in December 2025 to PHP 2,748.72 billion in June 2026 and PHP 2,750.38 billion in July 2026.

The peso value of these bonds and notes rose by PHP 385.27 billion year on year, PHP 360.72 billion year to date and PHP 1.66 billion month on month.

These changes represented increases of 16.29%, 15.09% and 0.06%, respectively.

Euro bonds increased from PHP 252.46 billion in July 2025 and PHP 262.41 billion in December 2025 to PHP 266.02 billion in June 2026 and PHP 269.30 billion in July 2026.

The balance rose by PHP 16.84 billion year on year, PHP 6.90 billion year to date and PHP 3.28 billion month on month.

These movements represented increases of 6.67%, 2.63% and 1.23%, respectively.

Japanese yen bonds moved from PHP 58.50 billion in July 2025 and PHP 56.85 billion in December 2025 to PHP 57.12 billion in June 2026 and PHP 59.00 billion in July 2026.

The balance was PHP 0.50 billion higher year on year, PHP 2.15 billion higher year to date and PHP 1.88 billion higher month on month.

These changes represented increases of 0.86%, 3.78% and 3.30%, respectively.

Chinese yuan bonds remained at PHP 0.00 billion throughout all four periods.

Islamic certificates increased from PHP 58.19 billion in July 2025 and PHP 58.79 billion in December 2025 to PHP 61.29 billion in June 2026 and PHP 61.33 billion in July 2026.

The balance rose by PHP 3.14 billion year on year, PHP 2.54 billion year to date and PHP 0.04 billion month on month.

These changes represented increases of 5.40%, 4.32% and 0.06%, respectively.

Peso global bonds remained at PHP 54.77 billion in July 2025, December 2025, June 2026 and July 2026.

The category recorded PHP 0.00 billion in changes and growth rates of 0.00% across the three comparison periods.

The foreign exchange rates used in the debt calculations were PHP 58.186 per USD 1 in July 2025, PHP 58.790 per USD 1 in December 2025, PHP 61.290 per USD 1 in June 2026 and PHP 61.327 per USD 1 in July 2026.

Outstanding guaranteed debt declined from PHP 352.97 billion in July 2025 and PHP 344.57 billion in December 2025 to PHP 305.07 billion in June 2026 before increasing to PHP 306.13 billion in July 2026.

The total remained PHP 46.84 billion lower year on year and PHP 38.44 billion lower year to date despite increasing by PHP 1.06 billion month on month.

These changes represented declines of 13.27% year on year and 11.16% year to date, alongside a 0.35% monthly increase.

Domestic guaranteed debt fell from PHP 262.00 billion in July 2025 and PHP 256.73 billion in December 2025 to PHP 218.13 billion in June 2026 and PHP 217.99 billion in July 2026.

The domestic total was PHP 44.01 billion lower year on year, PHP 38.75 billion lower year to date and PHP 0.15 billion lower month on month.

These movements represented declines of 16.80%, 15.09% and 0.07%, respectively.

National government direct domestic guarantees declined from PHP 261.86 billion in July 2025 and PHP 256.60 billion in December 2025 to PHP 218.00 billion in June 2026 and PHP 217.85 billion in July 2026.

The category was PHP 44.01 billion lower year on year, PHP 38.75 billion lower year to date and PHP 0.15 billion lower month on month.

These changes represented declines of 16.81%, 15.10% and 0.07%, respectively.

Assumed guarantees for government financial institutions remained at PHP 0.14 billion in July 2025, December 2025, June 2026 and July 2026.

The category recorded PHP 0.00 billion in changes and rates of 0.00% across all comparison periods.

External guaranteed debt declined from PHP 90.97 billion in July 2025 and PHP 87.84 billion in December 2025 to PHP 86.94 billion in June 2026 before increasing to PHP 88.15 billion in July 2026.

The balance was PHP 2.83 billion lower year on year and PHP 0.31 billion higher year to date, while rising PHP 1.21 billion month on month.

These movements represented a 3.11% year-on-year decline and increases of 0.35% year to date and 1.39% month on month.

National government direct external guarantees moved from PHP 86.00 billion in July 2025 and PHP 82.81 billion in December 2025 to PHP 81.70 billion in June 2026 and PHP 82.91 billion in July 2026.

The balance was PHP 3.09 billion lower year on year but PHP 0.09 billion higher year to date and PHP 1.20 billion higher month on month.

These changes represented a 3.60% year-on-year decline and increases of 0.11% year-to-date and 1.47% month-on-month.

Assumed external guarantees for government financial institutions increased from PHP 4.98 billion in July 2025 and PHP 5.03 billion in December 2025 to PHP 5.24 billion in June and July 2026.

The balance was PHP 0.27 billion higher year on year, PHP 0.22 billion higher year to date and unchanged month on month.

These changes represented increases of 5.39% year on year, 4.30% year to date and 0.08% from June.