PHILIPPINES: The country’s total government debt has reached a new record, hitting ₱18.16 trillion as of February 2026, according to the Bureau of the Treasury.
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Record Debt—but Still “Under Control”
New data shows the national debt increased slightly from ₱18.13 trillion in January to ₱18.16 trillion in February.
Officials say the increase is small—only 0.14%—and described the situation as “stable” and “well-managed.”
The government continues to borrow money to fund projects such as infrastructure, public services, and economic programs.
Most Debt Comes from Local Sources
To reduce risk, the government is borrowing more from inside the country.
Here’s the breakdown:
Domestic debt: ₱12.48 trillion (68.7%)
Foreign debt: ₱5.68 trillion
This strategy helps protect the country from sudden changes in global markets, especially currency fluctuations.
According to the Treasury, focusing on local borrowing makes the economy more stable.
Why Foreign Debt Went Down
Even with overall debt rising, foreign debt actually dropped in February.
This happened because of favorable exchange rates.
Foreign debt decreased by ₱128.65 billion
Currency changes reduced debt value by ₱136.43 billion
This means the weaker peso and global currency shifts helped lower the value of dollar-based loans.
However, the government still took on ₱7.78 billion in new foreign loans during the month.
Government Still Borrowing for Growth
The increase in local debt came from new borrowing.
The government issued ₱158.14 billion in securities
Total domestic debt rose by ₱154.39 billion
These funds are used to support national development projects.
The government also continues to borrow from global markets.
In fact, it raised $2.75 billion (around ₱150+ billion) through international bonds with terms of up to 25 years.
Officials say this shows strong investor confidence in the Philippines.
What This Means for Filipinos
A higher national debt DOES NOT immediately affect daily life—but it matters over time.
It can impact:
- Taxes in the future
- Government spending priorities
- Interest payments using public funds
For now, the government says the debt level remains manageable.