The Marcos administration has allocated a larger budget for next year to repay the government's debts to both domestic and international creditors, data from the Bureau of the Treasury revealed.

Based on the 2024 Budget of Expenditures and Sources of Financing submitted to Congress, the Treasury has allocated P1.911 trillion for government debt service, a 23 percent increase compared to the P1.552 trillion program for this year.

The majority of the debt payments, accounting for 77.1 percent, are allocated to local creditors, amounting to P1.474 trillion. This represents an 18 percent increase from the P1.246 trillion program this year.

Out of that amount, P1.003 trillion will be used for principal amortization, while the remaining P470.68 billion will cover interest payments.

The government has also allocated a total of P437.61 billion to repay foreign creditors, a 43 percent jump compared to this year's allotment of P305.68 billion.

Within that program for foreign banks, P237.82 billion is allotted for principal amortization, while the remaining P199.79 billion is earmarked for interest payments.

From January to May 2023, the government's total debt payment registered a substantial surge, nearly doubling from P414.07 billion in the same period last year to P819.53 billion.

The debt servicing expenses at end-May accounted for approximately 52.8 percent of the government's full-year program.

Last June, Budget Secretary Amenah F. Pangandaman said the national government intends to borrow P2.46 trillion in 2024, a 12 percent increase from this year's P2.2 trillion program.

Under the 2024 financing plan, the majority, approximately 75 percent or P1.845 trillion, will be sourced locally. The remaining balance of P615 billion, which accounts for 25 percent, will be sourced from overseas markets.

The Marcos administration expects the national government's total outstanding debt will climb to P15.842 trillion by the end of 2024 from this year's target of P14.623 trillion.

As of June 2023, the total debt of the national government already stood at P14.148 trillion, still short of the full-year program by 3.2 percent or P475 billion.