The national government’s outstanding debt climbed to a record high of P17.65 trillion at the end of November 2025, the Bureau of the Treasury (BTr) reported.

In a Wednesday, 7 January statement, the BTr said national debt rose by P85.84 billion from the previous month, equivalent to 0.49 percent, which it attributed to “the net issuance of domestic and external debt, which was partly offset by significantly lower valuations of foreign currency-denominated debt due to the peso’s appreciation.”

Domestic debt continued to account for the bulk of the government’s obligations at 68.66 percent, increasing by P71.73 billion to P12.12 trillion as of end-November 2025, driven largely by a P71.85-billion net issuance of government securities.

For the first 11 months of 2025, outstanding domestic debt rose by 10.86 percent, or P1.19 trillion, most of which resulted from the issuance of “new debt to fulfill financing requirements.” The BTr maintained that the current debt level remains consistent with the Ferdinand R. Marcos Jr. administration’s approved borrowing program for the year.

“Borrowing predominantly from domestic creditors and in local currency has been one of the main strategies pursued by the government to keep its debt sustainable. This is because peso obligations do not fluctuate with foreign exchange rates and the payment of interest redounds to the benefit of Filipino investors, further boosting domestic income,” the BTr said.

The Treasury earlier reported a P1.26-trillion budget deficit for the first 11 months of 2025. Government debt and deficits are closely linked, as deficits require financing that adds to outstanding obligations, while higher debt levels raise interest costs and future fiscal pressures if revenues fail to keep pace.

The BTr said the deficit as of end-November represents 80.92 percent of the administration’s P1.56-trillion full-year target, “reflecting the government’s commitment to prudent fiscal management and consolidation.”

Based on the latest available data, the country’s debt-to-GDP ratio stood at about 63.1 percent as of mid-2025. While elevated, economists generally consider a 50–70 percent ratio manageable for emerging economies, provided borrowing is long-term, well-structured, and supported by strong revenue performance.

However, government spending and revenue collections remain under heightened scrutiny amid corruption allegations involving budget insertions and unprogrammed appropriations linked to alleged ghost flood control projects. Alleged fraudulent audits handled by the Bureau of Internal Revenue have also drawn public attention.

President Marcos Jr. signed the P6.793-trillion national budget for fiscal year 2026 on Monday. The government plans to borrow about P2.68 trillion this year to help finance priority programs in infrastructure, education, and healthcare. Marcos Jr. vetoed around P92.5 billion in unprogrammed appropriations following public clamor, though concerns over discretionary and confidential funds persist.

“We hear you. In the 2026 national budget, the direction of your government is clear: we will be more prudent, more careful, and more responsible in spending the nation’s funds,” Marcos Jr. said.