GOVERNMENT DEBT hit P6.345 trillion at the end of May, the Bureau of the Treasury (BTr) said yesterday.
The debt total rose 7.8% or almost P500 billion from a year earlier. Month on month, the total was down 0.4%, or P25.06 billion.
The end-may total is at 97.22% of the P6.526 trillion in outstanding debt programmed for the end of the year, according to the Budget Expenditures and Sources of Financing report.
About 65%, or P4.137 trillion of the total debt came from domestic creditors, against P3.797 trillion a year earlier.
Against the end of April however, the domestic total was down 0.5%.
“The decrease was primarily due to the net redemption of government securities amounting to P22.70 billion and a stronger peso that reduced the value of onshore dollar bonds,” the Treasury bureau said in a statement.
Outstanding external debt meanwhile grew 5.7% to P2.208 trillion year on year.
From the month-earlier period, it fell 0.1%, or about P710 million.
“For the month, external debt reduction was attributed to the combined effect of stronger peso and net repayments of foreign obligations amounting to P7.07 billion. These more than offset the upward revaluation in 3rd currency-denominated debt worth P4.78 billion,” said the BTr.
The government borrows to fund its fiscal deficit — which is capped at 3% of gross domestic product until 2022.
It has programmed an 80-20 borrowing ratio, in favor of domestic lenders. — Elijah Joseph C. Tubayan
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