Gov’t debt rises 3% to P5.82 T

MANILA, Philippines - The government’s outstanding debt rose three percent to P5.82 trillion in June from P5.65 trillion in the same period last year,  the Bureau of Treasury (BTr) reported yesterday.

The BTr attributed the higher debt figure to the additional loans secured from domestic and foreign sources and the weakening of the peso against the dollar. 

Domestic borrowings climbed three percent to P3.84 trillion in June from P3.73 trillion a year ago, while loans from external sources went up three percent to P1.98 trillion from P1.92 trillion.

National government-guaranteed obligations during the month in review slid 13 percent to P402 billion from P462 billion amid currency fluctuations, the BTr said.

Budget Secretary Florencio Abad said   the government would be decreasing its borrowings to P674.8 billion next year from the P710.8 billion programmed for this year.

This means debt servicing will account for 14 percent of the country’s gross domestic product next year, DBM data showed.

Abad said the  bulk, or 85 percent, of next year’s  borrowings would be secured from domestic lenders, while the remaining 15 percent would be obtained from foreign sources.

Gross foreign borrowings are expected to plunge 41 percent to P104.6 billion next year from the P178.1 billion estimate this year, Abad said.

At the same time, gross domestic borrowings are expected to increase by seven percent to P570.2 billion in 2016 from the programmed P532.7 billion this year.

Fixed rate treasury bonds will account for  the bulk of these loans at P520.7 billion, while the remaining P49.5 billion are treasury bills (T-bills).