MANILA (April 2) — The Philippines’ total outstanding debt climbed to a new high of ₱18.16 trillion in February, as the government leaned more heavily on domestic borrowing to bankroll spending, according to the Bureau of the Treasury.
The figure marks a ₱1.53 trillion increase—or 9.19 percent—from ₱16.63 trillion a year earlier, and slightly exceeds January’s ₱18.13 trillion, underscoring the steady rise in state liabilities.
Treasury officials downplayed the increase, describing it as a “modest uptick” and pointing to a strategy that favors local financing to shield the country from volatile global markets.
But the growing debt pile raises a persistent question: how long can borrowing outpace revenue without straining public finances?
The shift toward domestic borrowing is designed to reduce exposure to foreign exchange risks and external shocks. Still, it also means greater competition for local funds, which could push up interest rates and crowd out private investment if not carefully managed.
Economists have long warned that while debt-funded spending can accelerate infrastructure and development, its sustainability hinges on economic growth and efficient use of funds—areas where the government continues to face scrutiny.
For now, fiscal managers insist the debt level remains “manageable.” But with borrowing still a central tool for funding national programs, the focus is increasingly turning to whether these loans are translating into measurable economic gains—or simply adding to a growing tab for future taxpayers.
