THE national government’s debt service declined in the first nine months of 2026 as lower principal repayments more than offset an increase in interest payments.
Data from the Bureau of Treasury (BTr) showed that the Marcos administration paid a total of P1.65 trillion to service its debt from January to September, down 11.69 percent from the P1.87 trillion recorded in the same period in 2025.
The decline came as amortization, or repayments of borrowed principal, fell by nearly 27 percent to P878.21 billion, more than compensating for the increase in interest payments, which climbed by almost 16 percent to P772.05 billion.
Interest payments increased by P106.21 billion from P665.85 billion in January to September 2025.
Domestic interest payments accounted for the larger share of the increase, rising by 18.27 percent to P584.74 billion from P494.39 billion in the same period last year.
Fixed-rate Treasury bond payments comprised P404.52 billion, followed by retail T-bonds (P131.24 billion) and T-bills (P41.15 billion).
Interest payments on external debt also increased, climbing by 9.25 percent to P187.32 billion from P171.46 billion in January to September 2025.
Meanwhile, amortization declined by P324.72 billion from P1.2 trillion a year earlier.
Domestic amortization dropped by 26.37 percent to P741.01 billion from P1.01 trillion in January to September 2025.
External amortization likewise declined, falling by 30.17 percent to P137.20 billion from P196.48 billion a year earlier.
In September alone, however, debt service climbed to P207.46 billion from P76.12 billion in August but was 36.73 percent lower than the P327.89 billion recorded in the same month last year.
The increase was driven primarily by amortization, which surged to P121.89 billion from just P10.50 billion in the previous month but was 50.49 percent lower than the P246.19 billion recorded in September 2025.
Interest payments likewise increased in September, reaching P85.57 billion from P65.62 billion in August and P81.70 billion in September 2025, respectively.
The national government’s outstanding debt climbed to a new record high of P19.07 trillion in June, surpassing the P19.06-trillion projection for 2026.
Government’s debt stock rose by P518.98 billion, or 2.8 percent, from P18.55 trillion at the end of May. It was also 7.67 percent up from the P17.71 trillion seen in 2025 while year-on-year it increased by 10.41 percent from P17.27 trillion.
Domestic obligations comprised 67.33 percent of the total while external debt accounted for the remainder.
Domestic debt rose to P12.84 trillion, up 2.74 percent from the month-earlier P12.5 trillion. It was 7.43 percent higher than the year ago P11.95 trillion.
External debt, meanwhile, rose by 2.92 percent to P6.23 trillion from May’s P6.05 trillion and was 17.13 percent higher than June 2025’s P5.32 trillion.
The national government’s outstanding debt climbed to a record P19.66 trillion at the end of September 2026, increasing by P53.47 billion from the previous month.
The latest debt stock was 0.27 percent higher than the P19.61 trillion recorded at the end of August. It also marked an 11.03-percent increase, equivalent to P1.95 trillion, from the P17.71 trillion recorded at the end of 2025.
Domestic obligations accounted for 67.39 percent of the total debt, amounting to P13.25 trillion, while external debt made up the remaining 32.61 percent, or P6.41 trillion.
