THE NATIONAL government’s outstanding debt is projected at P11.982 trillion by the end of 2021 with more borrowing in the works next year to fund enlarged spending commitments due to the pandemic, though the rate of expansion will not match this year’s pace.

Outstanding debt is expected to rise to P10.16 trillion by the end of 2020 from P7.731 trillion in 2019, with additional borrowing seen at P3.736 trillion and principal repayments P1.32 trillion this year, according to the latest Budget of Expenditures and Sources of Financing (BESF) report.

Of the total, 68% or P6.914 trillion will be sourced from domestic sources.

In 2021, additional borrowing is expected to total P3.48 trillion and principal repayments P1.718 trillion, with domestic creditors accounting for 71% of that year’s debt stock.

Outstanding debt climbed to P9.054 trillion at the end of June.

Economic managers estimate that the country’s debt stock will rise to 53.9% of gross domestic product this year, 58.3% in 2021 and 60% in 2022.

A separate BESF document indicates that the government has revised its borrowing mix to 74:26 in favor of domestic sources from 70:30 previously.

By 2022, the borrowing mix is expected to shift to 80:20 in favor of domestic sources. — Beatrice M. Laforga