Once again, the government turned to borrowing to fund its operations.
The Bureau of Treasury has announced that the outstanding debt of the national government of the Philippines is at P18.55 trillion as of end of May 2026, indicating a 0.41% or P76.11 billion increase from April’s record of P18.47 trillion.
According to the bureau, a major part or 67.37% of this debt came from domestic sources, while 32.63% were external obligations.
Domestic debt, or financial obligations from creditors within the country, now stood at P12.50 trillion, reflecting a 0.65% or P80.12 billion increase from the end of April. This also reflected a 3.13% or P379.26 billion increase from the end of December 2025.
The bureau said this increase is parallel with the government’s strategy to rely more on domestic sources.
Debts from external sources, meanwhile, moved down to P6.05 trillion, showing a 0.07% or P4.01 billion reduction from April.
“This is due to the significant peso appreciation against the US dollar and other foreign currencies,” the bureau said in a press release on Thursday, July 2.
Meanwhile, the guaranteed obligations of the national government also increased to P443.50 billion. This amounts to 15.73% or P60.28 billion increase from April.
Guaranteed obligations are financial debts from government-owned corporations and agencies, in which the national government acts as guarantor. It means the government is legally obligated to pay this amount if the original borrower failed.
The Bureau of Treasury added that the increase actually reflected the government’s strategy.
“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,” they added.
