NG debt hits new record of P16.31T

THE national government's (NG) outstanding debt climbed to a new record high of P16.31 trillion in January following continued borrowings and a weaker peso.

A total of P261.47 billion was added to the debt tally from December 2024's P16.05 trillion, and the count was also P1.52 trillion higher than the year-earlier P14.79 trillion.

The increase, the Bureau of the Treasury said on Tuesday, was due to the "net incurrence of new domestic and external debt, as well as the impact of peso depreciation against the US dollar from P57.847 at the end of 2024 to P58.375 at the end of January 2025."

Still, the "level remains manageable and in line with the government's target to support economic development while ensuring fiscal sustainability," it added.

Of the total debt stock, 32.1 percent was borrowed abroad while 67.9 percent was sourced domestically.

Domestic debt hit P11.08 trillion as of end-January, higher than the P10.93 trillion recorded a month earlier and P10.16 trillion in 2024.

The increase was said to be due to the net issuance of government securities totaling P152.17 billion. Gross issuances of P270.01 billion exceeded repayments of P117.84 billion to partly finance the projected deficit.

"Meanwhile, the valuation effect of local currency depreciation against the US dollar added P1.51 billion to the January debt total," the Treasury said.

Compared to the end of 2024, domestic debt was up 1.41 percent. Year on year, it was also higher at 9.07 percent.

External debt, meanwhile, totaled P5.23 trillion as of end- January, P107.79 billion or 2.1 percent higher compared to the month-earlier P5.12 trillion.

The increase was driven by P59.30 billion in new foreign loans and currency revaluation losses of P46.74 billion from the dollar and P1.75 billion from other currencies.

As for guaranteed obligations, these fell by P390 million or 0.11 percent to P346.27 billion as of end-January from a month earlier.

The decline was traced to the net repayment of domestic and external guarantees amounting to P1.55 billion and P250 million, respectively.

"The redemption of matured guarantees more than offset the currency valuation adjustments on US dollar and third-currency denominated guarantees amounting to P830 million and P580 million, respectively," it added.

Guaranteed debt was 2.39 percent, or P239 million, lower from year earlier's P348.66 billion.

Outstanding debt is expected to hit P17.35 trillion this year, with domestic debt seen accounting for the bulk at P11.98 trillion. The remaining P5.38 trillion will come from external sources.