NG spends P248 B for debt payments in Q1

MANILA, Philippines - Debt payments by the national government reached P248.65 billion in the first quarter, down 28 percent from the P344.48 billion in the same period in 2016, data from the Bureau of the Treasury (BTr) showed.

For March alone, spending for debt payments reached P92.07 billion, 42 percent lower than the P158.31 billion in the same month last year.

The government allots a portion of its budget for debt payments to settle obligations on a monthly basis, depending on their maturity. Debt payments form part of the government’s expenditures.

Of the total amount used to pay debt in the first quarter, P97.86 billion went to interest payments, while P150.80 billion went to principal payments.

Interest payments during the period decreased about four percent compared to a year ago.

This was further broken down to interest payments for domestic liabilities, which reached P59.71 billion, and foreign debt, which accounted for P38.14 billion.

According to the BTr, interest payments accounted for 16 percent of total expenditures during the quarter, down from 17 percent last year.

This means expenditures during the period went to more productive government spending.

Meanwhile, amortization in the first three months of the year went down 38 percent from year-ago levels.

The bulk of the amount used for principal payments went to offshore debt at P95.16 billion, while P55.64 billion was used for domestic liabilities. 

Based on the latest Budget of Expenditures and Sources of Financing document of the Department of Budget and Management, the government has programmed  a total of P647.27 billion for debt payments this year.

Of the amount, P334.87 billion was lined up for interest payments, while P312.40 billion was for amortization.