The national government’s outstanding debt climbed to P18.55 trillion as of end-May 2026, the Bureau of the Treasury reported, with the bulk of what the government owes now sourced from within the country.
Locally held obligations accounted for 67.37 percent of the total, reaching P12.50 trillion. That figure marked a 0.65 percent, or P80.12 billion, rise over the end of April, and stood P379.26 billion higher—up 3.13 percent—than where domestic debt closed at the end of December 2025. The Treasury attributed the movement to a deliberate tilt toward borrowing at home.
External debt made up the remaining 32.63 percent, or P6.05 trillion. Unlike its domestic counterpart, foreign-sourced debt eased slightly, slipping P4.01 billion or 0.07 percent from April. “This is due to the significant peso appreciation against the US dollar and other foreign currencies,” the bureau said in a July 2 press release.
Overall, the debt stock grew 0.41 percent, or P76.11 billion, from the record P18.47 trillion logged in April. The Treasury linked the additional borrowing to financing requirements arising amid the Middle East conflict, noting that a stronger peso against the dollar and other currencies kept the increase in check.
Guaranteed obligations—debts owed by state-owned corporations and agencies for which the national government serves as guarantor—rose to P443.50 billion, a jump of 15.73 percent or P60.28 billion from April. Under such arrangements, the government is legally bound to settle the amount should the original borrower default.
The Treasury framed the shift toward local creditors as a matter of policy. “This reflects the government’s prudent debt management strategy of prioritizing domestic financing to support local capital markets, while reducing exposure to foreign exchange risks,” the bureau said.
