The Philippines’ total outstanding debt rose to P10.77 trillion at the end of March 2021, as the government borrowed more to finance the coronavirus pandemic response and other budgetary requirements.

The latest figure from the Bureau of the Treasury is 10% higher than the end-December 2020 level of P9.795 trillion, 3.5% more than February 2021, and 27.1% more than the debt level in March 2020.

Of the total debt stock, 72% are domestic borrowings, while 28% were sourced externally.

Domestic debt amounted to P7.74 trillion, which is P1.05 billion or 15.7% more than the end-December 2020 figure, due to the issuance of government securities, including P411.8 billion in retail treasury bonds.

Domestic debt in March 2021 was 33.2% higher than the level in March 2020.

Meanwhile, external borrowings in March 2021 amounted to P3.03 trillion, 0.4% lower compared to February 2021 and 13.7% higher than March 2020.

The slight decline in March from February was due to the favorable net impact of both local and third currency fluctuations against the dollar.

The government is looking at a higher budget deficit of 8.9% in 2021, as government revenues fall amid the pandemic and corporate income taxes are reduced through the Corporate Recovery and Tax Incentives for Enterprises or CREATE law.

So far, the Philippines has issued euro and samurai bonds this year amid favorable interest rates. – Rappler.com