The Philippine government's outstanding debt went up by 8.65 percent on year to 5.16 trillion pesos (124.04 billion U.S. dollars) in July on back of increased domestic and foreign loans, the treasury bureau said Wednesday.

The national government's debt as of end-July was at 4.75 trillion pesos (114.15 billion U.S. dollars), or 411 billion pesos (9.88 billion U.S. dollars) higher than last year's. Sixty percent of the total debt were borrowed from domestic creditors, the rest is owed to foreign creditors.

Bulk of the domestic debt was in the form of government securities, while most of the foreign debt was in the form of foreign debt securities.

The national government debt is expected to hit 5.35 trillion pesos (128.57 billion U.S. dollars) by the end of this year, accounting for 50.3 percent of the country's gross domestic product.