NG debt to breach P19 trillion in 2026

THE NATIONAL Government’s (NG) outstanding debt is projected to balloon to a record P19.06 trillion by the end of 2026, a Department of Budget and Management (DBM) document showed on Wednesday.

- By Aubrey Rose A. Inosante Reporter

This as the government is planning to borrow P2.68 trillion next year to fund the national budget.

The 2026 Budget of Expenditures and Sources of Financing showed the NG's debt stock is expected to increase by 9.78% from the revised P17.36-trillion estimate for end-2025.

Of the total, domestic debt is expected to rise by 10.27% to P13.28 trillion by end-2026 from the projected P12.04 trillion by end-2025.

Outstanding external debt is also seen to jump by 8.67% to P5.78 trillion by end-2026 from P5.31 trillion by end-2025.

Finance Secretary Ralph G. Recto told BusinessWorld the NG debt is still manageable, noting the economy will be roughly worth P31.8 trillion by 2026.

As of June, the Philippines’ sovereign debt hit a fresh high of P17.27 trillion, up 11.5% from P15.48 trillion in the same month in 2024.

This brought the debt-to-gross domestic product (GDP) ratio to 63.1% at the end of June, the highest ratio since 2005. This is above the 60% debt-to-GDP threshold considered by multilateral lenders to be manageable for developing economies.

“It’s still consistent with our MTFF (Medium Term Fiscal Framework). But we want it at least 60%, that’s the international standard.