THE Philippines’ sovereign debt is projected to reach P19 trillion by the end of 2026.
According to the Budget and Expenditures and Sources of Financing for fiscal year 2026, the government expects the total outstanding debt to reach P19.057 trillion next year, higher than the projected P17.359 trillion debt level for 2025.
As of the end of June 2025, the government’s debt stock had already exceeded the P17 trillion mark, amounting to P17.267 trillion, a 2.1% increase from P16.918 trillion in May and 11% higher compared to P15.483 trillion at the end of June 2025. In 2024, the Philippines ended the year with a debt of P16.051 trillion, 9.8% higher than the P14.616 trillion debt level at the end of December 2023.
The bulk of the expected P19.057 trillion debt for 2026 will come from local sources, amounting to P13.28 trillion, while the remaining P5.78 trillion will come from external sources. For next year, the government’s gross borrowings are expected to reach P2.682 trillion, with a large portion, or P2.055 trillion, to be sourced locally, while the remaining P627.104 billion will come from foreign sources.
The government aims to issue P1.995 trillion in fixed-rate treasury bonds and P60 billion in treasury bills. For foreign borrowings next year, government projects and program loans will amount to P263.292 billion and P61.712 billion, respectively, while foreign bonds and other inflows will amount to P302.100 billion.
