The national government’s outstanding debt climbed to a new high of ₱18.16 trillion as of the end of February 2026, according to the Bureau of the Treasury.

In data released on Wednesday, April 1, the agency said that the figure was slightly higher by 0.14 percent, or ₱25.74 billion, compared to the ₱18.13 trillion recorded in January.

Despite the increase, the Treasury described the uptick as modest, emphasizing that it reflects the “government’s stable and well-managed debt position amid evolving global financial conditions.”

The government has continued to prioritize domestic financing to shield the country’s debt portfolio from external risks, particularly the economic impact of the ongoing conflict in the Middle East. Domestic borrowings accounted for 68.7 percent of the total debt.

Treasury data showed that domestic debt rose by ₱164.39 billion, or 1.25 percent, reaching ₱12.48 trillion in February as the government raised more funds locally.

In contrast, external debt declined to ₱5.68 trillion, down by ₱125.65 billion (2.21 percent) from ₱5.81 trillion in January.

“This is primarily driven by favorable foreign exchange rate movements, which decreased the peso value of US dollar- and third currency-denominated obligations by a combined ₱136.43 billion,” the Treasury said.

It added that the impact of currency fluctuations on foreign currency-denominated domestic securities remained minimal during the period.

However, currency pressures persisted. In March, the Philippine peso weakened sharply, hitting the ₱60-per-dollar level amid market concerns linked to the Middle East conflict.