The national government’s debt soared in May due to the depreciation of the Philippine peso and the government's net financing during the period, the Bureau of the Treasury reported on Thursday, July 4.
Data released by the treasury showed that the latest debt balance reflects a P330.39 billion, or 2.2 percent, increase to P15.35 trillion from P15.017 trillion at the close of April.
This is P1.193 trillion or 8.4 percent higher than the P14.154 trillion in the same period last year.
In May, the domestic debt level reached P10.44 trillion, up P134.34 billion or 1.3 percent compared to the previous month.
This resulted from the P131.66 billion net issuance of government securities and the P2.68 billion effect of peso depreciation on foreign-currency-denominated domestic debt.
Year-to-date, domestic debt has increased by P731.33 billion or 5 percent.
In terms of external debt, the treasury reported an increase of P196.4 billion, or 4.2 percent, to P4.90 trillion, as the net foreign loan availment reached P122.4 billion and P76.94 billion in an upward revaluation of US dollar-denominated debt.
Meanwhile, the favorable third-currency movement provided a P2.94 billion downward revaluation effect.
Government-guaranteed obligations stood at P350.20 billion as of end-May, marking a P5.85 billion or 1.6 percent decrease from the previous month.
Net repayment of domestic guarantees amounted to P4.36 billion, and external guarantees to P3.55 billion.
On the other hand, third currency appreciation against the US dollar fell to P0.62 billion, offsetting the P2.68-billion revaluation effect of the peso depreciation on dollar-denominated guarantees.
Data from the Department of Budget and Management showed that the borrowing program for 2024 was pegged at P2.46 trillion, higher than the P2.207 trillion in the past year.
In January this year, Finance Secretary Ralph G. Recto said that the country’s ballooning debt stock should not be “a cause for concern, as it represents only 60 percent of the country's economy or gross domestic product.”
“Today, at 60 percent, I'm not that much concerned about the national debt. It's your ability to pay that is important. It's not the size of the debt, but your ability to pay,” Recto told reporters.
Under the administration’s Medium Term Fiscal Framework, the government aims to reduce the debt-to-GDP ratio to less than 60 percent by 2025 and to 51.1 percent by 2028.
As of end-2023, the country’s debt-to-gross domestic product ratio was 60.2 percent, up from the 60.9 percent in end-2022, government data showed.