The Philippines’ national government debt surged to a record ₱18.16 trillion as of end-February 2026, according to the Bureau of the Treasury, marking a modest increase from January and a 9.19% jump compared to the same period last year.

Data released by the Treasury showed that the debt stock rose by ₱25.74 billion or 0.14% from January’s ₱18.13 trillion. The increase was attributed mainly to domestic borrowings, which accounted for ₱12.48 trillion or 68.7% of the total obligations.

Year-on-year, the country’s debt expanded by 9.19% from ₱16.63 trillion in February 2025, reflecting the government’s continued reliance on borrowing to finance public programs and infrastructure projects. The Treasury emphasized that the uptick was “modest” and underscored a “stable and well-managed debt position amid evolving global financial conditions.”

Officials noted that prioritizing domestic financing helped shield the debt portfolio from external risks such as currency fluctuations and global interest rate volatility. This strategy, they said, was crucial in maintaining fiscal stability despite global uncertainties.

The Marcos administration reiterated that while the debt pile has reached historic levels, the government remains committed to ensuring sustainability. The Department of Finance has previously outlined measures to boost revenue collection, improve tax administration, and manage expenditures to keep debt service manageable.

Economists, however, caution that the rising debt could pose challenges if economic growth slows or if global borrowing costs increase further. The Philippines’ debt-to-GDP ratio remains a key metric to watch, as it reflects the country’s capacity to repay obligations without compromising fiscal health.

This record-high debt underscores the delicate balance the government must maintain between financing development projects and ensuring long-term fiscal sustainability. The coming months will be critical as policymakers navigate global financial pressures while addressing domestic needs.