Manila: The Philippine government's total liabilities increased to PHP17.71 trillion by the end of 2025, with a significant portion of the debt portfolio sourced domestically, as reported by the Bureau of the Treasury (BTr).

According to Philippines News Agency, the BTr data released on Tuesday indicated a 10.32 percent rise in total debt from PHP16.05 trillion at the end of 2024. The increase was attributed to the government's strategic net issuance of debt instruments aimed at funding development programs, alongside the valuation effects of the peso's depreciation against the US dollar and other currencies.

The report highlighted that domestic creditors accounted for 68.4 percent of the total liabilities, amounting to PHP12.12 trillion. Meanwhile, foreign-currency denominated liabilities stood at PHP5.59 trillion. The BTr emphasized that prioritizing peso-denominated financing reduces exposure to exchange rate volatility, keeps interest payments within the domestic economy, and offers a stable investment option for Filipinos.

The government has been sourcing funds through the issuance of various debt papers, including treasury bonds, treasury bills, retail treasury bonds, and foreign currency-denominated debt papers and loans. In 2025, domestic debt saw an increase of PHP1.19 trillion year-on-year, while foreign debt rose by PHP47 billion from PHP5.12 trillion in 2024.

The BTr noted that the national government recorded net domestic financing of PHP1.18 trillion in the previous year, demonstrating sustained investor confidence in government securities amidst changing market conditions. External financing was described as prudent and largely concessional, resulting in a net external financing level of PHP317.02 billion from global bond issuances and various program and project loans aimed at supporting infrastructure, social reform, and the agriculture and industry sectors.

Additionally, guaranteed obligations experienced a decline of 0.60 percent, or PHP2.09 billion, settling at PHP344.57 billion due to net repayments of domestic and external guarantees. Guaranteed debt represented approximately 1.2 percent of the gross domestic product, indicating minimal contingent debt risks.