Government debt swells to record high P11 trillion

The national government’s outstanding debt rose to a fresh record high of 11 trillion pesos in April, boosted by both local and external borrowings, the Bureau of the Treasury said.

The total debt portfolio further grew by two percent or by 217 billion pesos from its end-March level. Out of the total debt stock, 29 percent was sourced externally while 71 percent was domestic borrowings.

The country’s debt-to-GDP ratio, however, remains below the internationally acceptable threshold of 60 percent, effectively giving it room to spend and borrow more to support the economy.

This year, economic managers expect this to rise to as much as 57 percent as borrowings are ramped up to 3 trillion pesos to finance pandemic-response expenses.

Domestic debt amounted to 7.8 billion pesos, inching up by 0.9 percent from the end-March level, mainly due to the issuance of more government securities.

Outstanding domestic debt rose by 16.7 percent.

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