Philippine government debt may exceed P19 trillion by end-2026

The Philippine government’s outstanding national debt is projected to surpass P19 trillion by the end of 2026, with the majority the amount to be financed through domestic borrowing,  according to documents released by the Department of Budget and Management (DBM). 

The government’s Budget of Expenditures and Sources of Financing for 2026 shows that the total outstanding debt is expected to reach P19.057 trillion next year, a significant increase from the projected P17.359 trillion for 2025.

In 2024, the country’s outstanding debt reached P16.051 trillion. 

At end-June 2025, the national government’s total outstanding debt amounted to  P17.27 trillion.  Total domestic debt reached P11.95 trillion as of end-June,  while external debt stood at P5.32 trillion. 

The DBM said of the P19.057 trillion  projected national debt for next year, P13.28 trillion would be sourced from domestic lenders, with the remaining P5.78 trillion coming from foreign sources.

To finance this, the government’s total gross borrowings are expected to be P2.682 trillion. The majority of this, P2.055 trillion, will be raised locally, while P627.104 billion will be sourced internationally.

For domestic borrowing, the government plans to issue P1.995 trillion in fixed-rate treasury bonds and P60 billion in treasury bills.

For foreign borrowing, the DBM projects P263.292 billion from program loans, P61.712 billion from project loans and P302.100 billion from foreign bonds and other inflows

The government’s P6.973 trillion for 2026 is  equivalent to 22 percent of gross domestic product (GDP), reflecting  a 7.4-percent increase from the 2025 budget of P6.326 trillion. 

The proposed 2026 national budget further integrates key measures to enhance climate and disaster resilience, reinforce social protection systems and deepen the devolution of basic services to local government units.

To fund next year’s budget, the government  expects to collect P4.98 trillion, higher than the P4.52 trillion revenue program this year. 

Last year, the government collected P4.41 trillion. 

The Bureau of Internal Revenue (BIR) is projected to collect P3.59 trillion this year, while the remaining P1.01 trillion will be collected by the Bureau of Customs.