MANILA, Philippines - The government’s domestic and foreign debts have been increasing at an average rate of P214.19 billion every year, a Commission on Audit (COA) report shows.
Based on COA data, the national debt rose from P4.701 trillion in 2010 to P4.940 trillion in 2011, with P2.860 trillion representing domestic debts and P2.080 trillion foreign.
“From year 2002 to 2011, domestic debt showed an average growth rate of 6.58 percent or P132.85 billion per year, while the annual growth of foreign debt is 5.38 percent or P81.34 billion,” COA chair Ma. Grace Pulido Tan said in her agency’s annual financial report. President Aquino, Senate President Juan Ponce Enrile and Speaker Feliciano Belmonte Jr. have been furnished copies of the report.
The COA report said domestic borrowings representing 57.90 percent of the national government’s total debt increased by P156.02 billion, while foreign borrowings grew by P83.25 billion.
COA said the government has to resort to borrowings for deficit financing as well as to back up expenditures for various development projects, including infrastructure.
In 2011, the Bureau of the Treasury issued Benchmark Bonds, the largest domestic bond swap transaction of the national government. The government also issued Retail Treasury Bonds to raise funds.
As of Dec. 31, 2011, COA said the national government’s total assets stood at P3.299 trillion and its total liabilities at P5.382 trillion.
The COA report said the national government’s P3.299-trillion asset was P160.58 billion or 5.12 percent higher than the P3.139 trillion reported in 2010.
“Investments’ growth of P174.14 billion this year was brought about by the P161.20 billion or 26.19 percent increments in Sinking Fund contributions and P12.94 billion improvement in Investment in Securities,” COA said.