Manila: Issuance of government securities, along with weakening of the Philippine peso, resulted in the 0.61 percent jump in government liabilities in October 2025 against the previous month's level. Data released by the Bureau of the Treasury (BTr) Tuesday showed that outstanding debt of the government totaled PHP17.56 trillion as of end-October, up by PHP106.78 billion compared to the end-September 2025 level.

According to Philippines News Agency, the expansion was driven by net issuances of domestic and external liabilities, as well as due to the upward revaluation effects of the weaker peso against the US dollar. Of the total, the share of domestic liabilities reached 68.6 percent, consistent with the Bureau of the Treasury's debt strategy of prioritizing local currency financing to mitigate foreign exchange risks and foster the development of the domestic bond market.

Liabilities sourced from domestic sources inched up by PHP72.43 billion to PHP12.05 trillion. This was due to the PHP70.65 billion net issuance of government securities during the month and the impact of a weaker peso, which added PHP1.78 billion to the local currency valuation of retail dollar bonds (RDBs).

Foreign debt during the said period increased by PHP34.35 billion to PHP5.52 trillion compared to the previous month's level due to net availment of loans of PHP8.25 billion and upward net adjustments in the peso equivalent of foreign currency debt of PHP26.10 billion. Peso depreciation against the U.S. dollar added PHP58.64 billion to the debt total, while peso appreciation against third currencies provided an offset of PHP32.54 billion, the BTr said.

BTr said that during the same period, guaranteed liabilities of the national government went down by PHP2.22 billion to PHP344.41 billion due to net repayments of PHP1.25 billion and lower valuation of foreign currency guarantees of PHP0.97 billion, as external guarantees are comprised more of obligations in third currencies than in US dollars.

The Bureau reaffirmed its commitment to prudent debt and risk management, ensuring that borrowings remain aligned with the government's long-term fiscal sustainability goals and supportive of a thriving and stable macroeconomic environment toward a prosperous and more inclusive future for Filipinos.