Government settles P680.47 billion in liabilities in 2017
This, however, is slightly higher than the P647.27 billion programmed for debt payments set under the 2017 Budget of Expenditures and Sources of Financing document of the Department of Budget and Management. Philstar.com/File Photo
MANILA, Philippines — The national government spent P680.47 billion for debt payments in 2017, the Bureau of the Treasury (BTr) reported.
According to latest data from the BTr, the national government settled P680.47 billion in liabilities last year, 13.86 percent lower than the P789.97 billion paid in 2016.
This, however, is slightly higher than the P647.27 billion programmed for debt payments set under the 2017 Budget of Expenditures and Sources of Financing document of the Department of Budget and Management.
For the month of December alone, debt service amounted to P27.96 billion, up 12.2 percent.
The government allots a portion of its budget for debt payments to settle obligations on a monthly basis, depending on their maturity.
Of the total debt payments in 2017, about P310.54 billion was spent on interest payments. The remaining P369.93 billion came in the form of principal payments.
Interest payments were two percent higher than the P304.45 billion settled in 2016.
Further broken down, interest payments for domestic liabilities amounted to P210.48 billion, while interest payments for foreign debt accounted for P100.07 billion.
The BTr earlier attributed the increase in interest payments to coupon payments for retail Treasury bonds issued in September 2016 and April 2017, as well as fluctuations in foreign exchange rates.
According to the BTr, this remained seven percent below program, generating savings of P24.3 billion for the government.
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