Government debt hits record ₱19.07 trillion in June 2026

National Government continues to rely on borrowing as domestic debt climbs to ₱12.84 trillion.

The National Government’s debt climbed to a record ₱19.07 trillion at the end of June, as the government continued to rely on borrowing to finance its priorities while adding to its long-term debt obligations.

Data from the Bureau of the Treasury showed that outstanding debt rose 2.80% from ₱18.55 trillion at the end of May, driven by higher domestic and external borrowings. A stronger peso helped temper the increase by lowering the peso value of some foreign-denominated obligations.

Domestic debt accounted for the biggest share of the total debt pile at 67.33%, reaching ₱12.84 trillion by end-June. The increase came mainly from ₱342.93 billion in net government securities issuances, partly offset by a ₱600 million reduction in onshore dollar bonds due to the peso’s appreciation.

On the other hand, external debt rose 2.92% to ₱6.23 trillion, largely due to ₱223.11 billion in net foreign loan availments. The increase was partly cushioned by a ₱46.46 billion reduction from peso appreciation against the dollar and other currencies.

Compared with the end of 2025, domestic debt has grown 5.96%, while external debt increased 11.38%.

The Treasury also reported that government guaranteed obligations dropped 31.21% to ₱305.07 billion at the end of June from ₱443.50 billion in May, following repayments of domestic and external guarantees. Despite the monthly decline, guaranteed obligations remained 11.46% higher than their end-2025 level.

The latest figures show how borrowing continues to play a role in funding government programs and operations, while keeping debt management as a key consideration for future budgets.

READ: