Gov't debt hits P5.075 T

Manila, Philippines -  The total outstanding debt of the National Government climbed to P5.075 trillion as of end-April, higher by P363.32 billion than the year-ago level of P4.711 trillion, latest data from the Bureau of the Treasury (BTr) showed.

This as both domestic and foreign debt climbed during the period as the government continued to rely on borrowings to plug its budget gap.

Theoretically, at this level, each of the 94 million Filipinos is indebted by P53,989.

Domestic debt climbed to P3.018 trillion as of end-April from P2.685 trillion a year ago or in increase of P333.11 billion. Foreign debt inched up as well, rising to P2.056 trillion as of end-April from P2.026 trillion a year ago.

However, compared to the end-March level of P5.088 trillion, the government’s total outstanding debt was lower by P13.70 billion, data from the Treasury also showed.

The P2.056-trillion foreign debt accounts for 40.52 percent of the country’s total debt pie. The foreign level of P3.018 trillion, meanwhile, accounts for 59.48 of total debt.

Domestic debt increased by P3.76 billion from the recorded end-March 2012 level as the government issued more securities than it redeemed during the period.

On the other hand, foreign debt decreased by P17.46 billion from the previous month’s level as the appreciation of the local currency against the dollar shaved off P28.97 billion in foreign debt.

On the other hand, the total contingent debt of the National Government declined P548.97 billion from end-March 2012 level of P549.50 billion.

The Treasury said that domestic contingent debt increased by P1.18 billion due to domestic borrowings of Philippine Export Import Credit Agency (Philexim) and the Land Bank of the Philippines.

The contingent debt is composed mainly of guarantees issued by the National Government on the borrowings of state agencies and government financial institutions.

The Aquino administration hopes to slash the budget deficit as a ratio of gross domestic product (GDP) to two percent in 2013 from the projected 2.6 percent this year.

This year, the deficit is projected to hit roughly P280 billion or 2.6 percent of GDP from the actual P197.8 billion recorded in 2011.