The national government's outstanding debt rose to P18.55 trillion as of end-May 2026, up P76.11 billion, or 0.41 percent, from P18.47 trillion a month earlier, driven mainly by new domestic borrowings, according to the Bureau of the Treasury (BTr).

The BTr said the increase came as the government continued to tap the domestic market to meet its financing requirements amid ongoing geopolitical tensions in the Middle East. The rise in debt was partially offset by the peso's appreciation against the US dollar and other foreign currencies, which reduced the peso value of external obligations.

Domestic debt reached P12.50 trillion, accounting for 67.37 percent of total debt, while external debt stood at P6.05 trillion, or 32.63 percent. The Treasury said the debt mix reflects the government's strategy of relying more heavily on domestic funding to support local capital markets while limiting exposure to foreign-exchange risk.

The BTr said domestic debt increased by P80.12 billion from April, largely due to the net issuance of P80.23 billion worth of government securities. Since the start of the year, domestic obligations have expanded by P379.26 billion, in line with the government's domestically oriented borrowing program.

External debt, meanwhile, declined by P4.01 billion month-on-month to P6.05 trillion. The Treasury attributed the decrease to favorable foreign exchange movements, which generated a P18.91-billion downward valuation adjustment that more than offset P14.90 billion in net external loan availments. Despite the monthly decline, external debt remained 8.22 percent higher than its end-2025 level.

Government securities continued to account for the bulk of borrowings, totaling P12.50 trillion domestically and P3.05 trillion in external debt securities. Outstanding external loans stood at P3.0 trillion.

Meanwhile, national government-guaranteed obligations jumped to P443.50 billion at end-May, up 15.73 percent from April and 28.71 percent higher than the end-2025 level. The increase was primarily driven by the issuance of P61.62 billion in new domestic guarantees.

Domestic guarantees accounted for P354.84 billion of total guaranteed obligations, while external guarantees stood at P88.67 billion.