The Philippine government’s total outstanding debt reached P17.65 trillion at the end of November 2025, up 0.49 percent from the previous month, as the state continued to ramp up borrowing to meet its full-year financing program.
The debt stock rose by P85.84 billion from the P17.56 trillion recorded at the end of October.
It was also up 9.94 percent, or P1.6 trillion, from P16.05 trillion recorded in November 2024.
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said the growth in outstanding debt was consistent with the continued budget deficit in the recent months, whereas there is an increased need for higher government borrowing.
“For the coming months, the outstanding national government debt could go to new record highs amid new national government borrowings in recent months and also the need to hedge both local and foreign borrowings of the national government in view of the Trump factor that caused volatility in the global financial markets since October 2024….as well as the need to hedge government borrowings in view of geopolitical risks,” said Ricafort.
Data from the Bureau of the Treasury showed the month-on-month growth was led by the net issuance of both domestic and external debt, but the increase was tempered by a stronger peso that reduced the valuation of foreign currency obligations.
Domestic debt, which accounts for 68.66 percent of the total, rose 0.60 percent to P12.12 trillion.
The Treasury attributed this to P71.85 billion in net issuance of government securities, offset slightly by a P0.12 billion reduction in the peso valuation of retail dollar bonds.
Since the start of 2025, domestic debt has increased by P1.19 trillion or 10.86 percent. Of this amount, P1.18 trillion came from new debt issuances for financing requirements, while P2.52 billion resulted from the weakening of the peso compared to its 2024 year-end level.
Government officials said borrowing predominantly from local creditors in the local currency remains a core strategy to maintain debt sustainability.
This minimizes exposure to foreign exchange fluctuations and ensures interest payments benefit Filipino investors, supporting domestic income.
External debt also edged up by 0.26 percent to P5.53 trillion. While the government recorded P22.84 billion in net loan availment in November, this was partially offset by P8.73 billion in downward valuation adjustments.
These adjustments were fueled by the peso’s appreciation against the U.S. dollar and other third currencies like the Japanese yen and the euro.
The peso ended November at 58.729 against the US dollar, compared to 58.771 at the end of October.
Compared to the end of 2024, external debt has grown by 8.01 percent or P410.04 billion.
New loans and bonds accounted for P276.00 billion of that increase, while P134.04 billion was linked to net valuation adjustments from peso depreciation during the first 11 months of the year.
The Treasury said that external financing remains prudent and focused on long-term sustainability. Most foreign borrowings are concessional and program-based, offering long maturity terms and lower interest costs. Proceeds are typically funneled into priority infrastructure and development programs intended to boost the economy’s long-term growth and debt-servicing capacity.
Guaranteed obligations of the national government also rose 3.38 percent to P356.04 billion. This was led by P12.71 billion in net domestic guarantees for the Power Sector Assets and Liabilities Management Corp. (PSALM), but the rise was slightly offset by repayments and favorable exchange rate movements.
