Government debt piles up to P19.6 trillion in August

The national government's debt reached a record high of P19.61 trillion by the end of August, driven by increased borrowing and a weaker Philippine peso, according to the Bureau of the Treasury (BTr). The debt stock saw a 1.1 percent growth from P19.39 trillion at the end of July, marking a 12.2 percent rise compared to August 2025's P17.47 trillion.

Domestic debt accounted for 67.5 percent of the total, while foreign debt comprised 32.4 percent. A significant portion of the increase was attributed to domestic debt, which rose by 1 percent to P13.24 trillion from P13.11 trillion in July, a 9.5 percent jump from the previous year's P12.09 trillion. This surge was largely due to P127.85 billion in net issuances of government securities.

Meanwhile, external debt climbed by 1.3 percent to P6.37 trillion, a 18.3 percent increase from the previous month. The majority of this rise was due to a P90.32 billion revaluation of foreign currency-denominated debt as the peso weakened. Net external loan availments added P2.86 billion to the debt. Despite these increases, guaranteed obligations, which are debts guaranteed by the national government, rose by only 0.2 percent to P306.74 billion due to a P720 million revaluation of external guarantees, partially offset by repayments.

The peso's depreciation further exacerbated the debt situation, as the government's debt denominated in foreign currencies became more valuable in local currency terms.