MANILA – The national government’s outstanding debt stood at another record-high of P7.04 trillion in the first seven months of the year on the back of higher domestic and foreign borrowings.
Data from the Bureau of the Treasury (BTr) showed the total outstanding debt rose by P27.40 billion, or 0.4 percent from P7.02 trillion as of end-June.
Year-on-year, outstanding obligations increased by 10.3 percent from P6.38 trillion in the same period last year.
The Treasury said the higher end-July debt was due to “net availments on both domestic and foreign obligations.”
Budget secretary Benjamin Diokno earlier said the correct metric was computing the debt-to-gross domestic product ratio as he brushed off concerns that the rising debt, in terms of absolute value, will push the country deep in debt.
The Budget chief said the country’s debt-to-GDP ratio is below 60 percent. It is at 42 percent in 2017 and is expected to decline further to 39 percent in 2022.
Domestic debt or obligations sourced locally amounted to P4.6 trillion, up 0.5 percent month-on-month and 11 percent a year earlier.
“The increase in the level of domestic debt was due to the net issuance of government securities amounting to P21.57 billion, slightly tempered by the stronger peso that diminished the value of onshore dollar bonds by P120 million,” the BTr said.
The peso appreciated from P53.404:$1 as of end-June to P53.160:$1 as of end-July, it said.
External debt or those sourced overseas totaled P2.443 trillion, up 0.2 percent from end-June and 9.1 percent year-on-year.
“The inclement in external debt was due to net availments of foreign loans amounting to P20.68 billion. The increase was offset by currency fluctuations on both dollar and third-currency denominated debt amounting to P11.14 billion and P3.60 billion, respectively,” the BTr said. (GMA News)
