Repayments drive dip in government debt stock

MANILA, Philippines – The Philippine government’s outstanding debt slightly declined to P18.47 trillion in April as repayments of domestic obligations outweighed the valuation impact of a weaker peso on foreign currency-denominated liabilities.

Data from the Bureau of the Treasury showed total outstanding obligations receded by 0.09 percent, or P17.54 billion, month on month.

READ: Weaker peso bloats government debt

Since the beginning of the year, liabilities have piled up by 4.31 percent or P762.78 billion.

Domestic debt, which accounts for about two-thirds of the total, edged down 0.95 percent to P12.41 trillion as the government paid P121.64 billion more than it borrowed locally.

The government raised P283.24 billion from the onshore debt market during the month, but settled P404.88 billion in maturing obligations.

A P2.46-billion valuation increase in the peso equivalent of foreign currency-denominated domestic securities from peso depreciation partially tempered the decline, the Treasury said.

Meanwhile, external debt grew by 1.71 percent to P6.06 trillion. Revaluation of foreign currency-denominated obligations amounted to P101.72 billion due to the weaker peso against the US dollar and third-currency movements.

Further, the government repaid about P80 million more in offshore debt than it issued during the period.

For 2026, the government is projecting a P1.6-trillion budget deficit, equivalent to 5.3 percent of gross domestic product. To bridge the fiscal gap, the borrowing program has been set at P2.68 trillion. INQ