THE government’s outstanding debt hit a new record high at the start of the year as it moved early to lock in more favorable financing terms amid global uncertainties.
At P18.13 trillion, outstanding debt grew by P1.82 trillion in January, or 11.16 percent, from P16.31 trillion a year earlier, the Bureau of the Treasury reported on Wednesday.
It was also 2.41 percent higher than December 2025’s P17.71 trillion.
“The month-on-month increase mainly reflects the government’s strategy of frontloading domestic and external issuances to secure concessional financing terms ahead of global market uncertainties that can further raise interest costs,” the Treasury said in a statement.
Despite the new record high, it said the government’s debt portfolio remained “sustainable amid pressing challenges in the domestic and global landscape.”
“With domestic debt comprising 68.0 percent of the total debt stock, exposure to foreign exchange risks is effectively limited,” the Treasury added.
Domestic debt increased to P12.32 trillion at the start of the year, up by P1.24 trillion, or 11.19 percent, from a year earlier.
“The net incurrence of government securities amounting to P208.05 billion reflects the NG’s (national government) commitment to prioritize domestic sources of funding, providing Filipinos with a safe and stable investment option while supporting national development,” the Treasury said.
“This also reduces the NG debt portfolio’s exposure to exchange rate fluctuations,” it added, noting that the valuation impact on domestic securities denominated in foreign currencies was marginal, increasing only by P470 million.
External debt, meanwhile, increased by P580.51 billion to P5.81 trillion, driven by the issuance of new global bonds and net availments of official development assistance from international development partners, which added P191.02 billion to external obligations.
The weaker peso also pushed up the value of foreign currency-denominated debt, adding P26.61 billion to the total due to the revaluation effect.
“The recent increase in external borrowings was a strategic and timely approach to capitalize on a narrow window of favorable international credit conditions,” the Treasury said.
Guaranteed obligations fell by P1.19 billion, or 0.34 percent, to P345.08 billion in January but increased by 0.15 percent from P344.57 a month earlier.
“This slight uptick can be attributed to currency valuation adjustments on guarantees denominated in foreign currencies,” the Treasury said.