Each Filipino owes P55,457 as PH debt climbs to P5.2-T in Sept

MANILA, Philippines – The total outstanding debt of the national government reached P5.213 trillion as of September, bringing the equivalent debt of each of the 94 million Filipinos to P55,457.

The additional government debt of P342.23 billion from September 2011’s P4.87 trillion level was largely due to the increase in domestic, not foreign, debts, the Bureau of Treasury reported on Tuesday, November 13.

The government’s outstanding debt represents direct and assumed loans to various foreign and local lenders, incurred mainly to finance expenditures such as education and public health.

These borrowings were via debt securities sold to local investors, foreign bonds issued by the government, and direct loans availed by government agencies and relent to government-owned and controlled corporations (GOCCs).

Domestic debts

Local borrowings dominate the borrowing mix, accounting for over 61% of total debts. 

Domestic debts climbed to P3.184 trillion as of September 2012 from P2.78 trillion recorded in September 2011.

These comprised largely of Treasury bills and bonds sold to local investors amounting to P3.182 trillion as of end-September 2012.

Foreign debts

Foreign borrowings, on the other hand, accounted for 39% of total government debts. 

These declined to P2.028 trillion from P2.089 trillion recorded as of end-September 2011.

Debts owed to foreign creditors amounted to P1.223 trillion in bond issuances as of end-September 2012.

These are broken down as follows: P1.044 trillion in US dollar bonds; P53.92 billion in Japanese Yen bonds; P27.02 billion in Euro bonds and P98.88 billion in global peso-denominated bonds.

Guaranteed debts

On the other hand, the total guaranteed debt of the national government or debt incurred by state agencies and corporations but guaranteed by the government declined compared to year-ago levels.

The total guaranteed debt of the national government amounted to P540 billion as of end-September 2012, down P42.92 billion or 7.36% from the end-September 2011 level of P583 billion.

Of the amount, guaranteed domestic debt dropped to P155.37 billion, while the guaranteed foreign debt declined to P385 billion.

According to the 2012 fiscal program, the debt stock will reach P5.52 trillion by year’s end and climb to P5.91 trillion in 2013.

The Aquino administration hopes to slash the budget deficit to P279 billion this year or 2.6% of gross domestic product (GDP) and to P241 billion or 2% of GDP in 2013. – Rappler.com