Push Admin

Philippine government's debt hits record P11.97 trillion in October

Article (news)

ABS-CBN News

<p>MANILA (UPDATE) - The Philippine government’s debt stood at a record P11.97 trillion at the end of October, the Bureau of Treasury said on Wednesday. </p><p>This was 19.38 percent higher than in October last year and 22.22 percent higher than at the start of the year. </p><p>Since October last year, the government has added P1.9 trillion to the national debt. </p><p>“Of the total debt stock, 29.3 percent was sourced externally while 70.7 percent were domestic borrowings,” Treasury said. </p><p>The country’s domestic debt amounted to P8.47 trillion. Since the start of 2021, domestic debt has increased by P1.77 trillion or 26.49 percent, the agency said. </p><p>Foreign debt meanwhile stood at P3.5 trillion. Since the start of the year, the country added P402.81 billion to its foreign debt stock, up 12.99 percent.</p><p>RCBC chief economist Michael Ricafort noted that the national debt grew at a slower year-on-year pace in October this year compared to September when debt expanded 27.2 percent. </p><p>Ricafort said the narrower P64.3 billion budget deficit in October, which was the narrowest in 6 months, could have led to a reduced need for additional government borrowings. </p><p>However, the P360 billion 5.5-year 4.625 percent Retail Treasury Bond issuance by the national government to be settled on December 2, 2021 will fundamentally increase the country&#x27;s outstanding debt stock by December 2021, Ricafort said. </p><p>In 5 years and 4 months, the administration of President Rodrigo Duterte has more than doubled the country&#x27;s debt from P5.95 trillion at the end of June 2016.</p><p>Finance Secretary Carlos Dominguez III has said that the government expects to borrow P3 trillion this year, and P2.25 trillion next year. </p><p>Economic managers have said that the country&#x27;s debt-GDP (gross domestic product) ratio remains sustainable despite the uptick in borrowing. </p><p>The national government&#x27;s debt-to-GDP ratio is expected to slightly increase to 60 percent next year from the programmed 59 percent ratio in 2021, Dominguez has said. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/10/08/21/governments-urged-to-make-fiscal-plans-to-tame-pandemic-debt">IMF urges governments to make fiscal plans to tame pandemic debt</a></li>	<li><a href="https://news.abs-cbn.com/business/10/25/21/philippines-books-p114-t-budget-deficit-from-jan-sept">Philippines books P1.14 trillion budget deficit from Jan-Sept, up 29.6 percent</a></li></ul><div><strong>RELATED VIDEO</strong></div><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/lvXQ9IElbfc?enablejsapi=1" width="560"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

Since October last year, the government has added P1.9 trillion to the national debt. 