The National Government's (NG) outstanding debt climbed to P18.55 trillion as of May 31, 2026, reflecting a 0.41% increase or P76.11 billion from the P18.47 trillion recorded at the end of April, according to the Bureau of the Treasury (BTr).
In a press release issued on July 2, the Bureau of the Treasury said the increase was primarily driven by the government's continued issuance of domestic securities to meet its financing requirements, despite economic uncertainties brought about by the ongoing conflict in the Middle East.
"The increase was primarily driven by the net incurrence of domestic securities as the government continued to raise funds to support financing needs, despite the ongoing Middle Eastern conflict," the BTr said.
The agency added that the appreciation of the Philippine peso against the U.S. dollar and other foreign currencies helped temper what could have been a larger increase in the country's debt stock by reducing the peso value of external obligations.
Domestic Debt Continues to Dominate
The government's debt portfolio remains largely composed of domestic borrowings, which accounted for 67.37% of the total outstanding debt, while 32.63% came from external obligations.
Domestic debt reached P12.50 trillion, up 0.65% or P80.12 billion from the previous month. The increase was mainly attributed to the P80.23 billion net issuance of government securities, while the stronger peso slightly reduced the valuation of onshore dollar bonds by P0.11 billion.
Compared with the end of December 2025, domestic debt has increased by 3.13% or P379.26 billion, consistent with the government's strategy of relying more heavily on domestic financing.
External Debt Slightly Declines
Meanwhile, external debt edged down to P6.05 trillion, a 0.07% decrease or P4.01 billion from April.
According to the Treasury, the peso's appreciation generated a favorable valuation effect of P18.91 billion, which more than offset the P14.90 billion in net external borrowings during the month.
Despite the monthly decline, external debt remains 8.22% higher than its end-December 2025 level, increasing by P459.54 billion.
Guaranteed Obligations Increase
The Bureau of the Treasury also reported that the national government's guaranteed obligations rose to P443.50 billion as of end-May, an increase of 15.73% or P60.28 billion from the previous month.
The increase was largely due to the issuance of P61.62 billion in new domestic guarantees. This was partially offset by favorable foreign exchange revaluation effects and repayments of external guarantees.
Compared with the end of December 2025, guaranteed obligations have increased by 28.71%, equivalent to P98.93 billion.
The Treasury said the government's debt profile continues to reflect its prudent debt management strategy of prioritizing domestic financing to support the local capital market while minimizing exposure to foreign exchange risks.
