MANILA -The ratio of the national government’s debt stock to the size of the economy is seeing decreasing by the end of this year even as outstanding obligations reached P14.1 trillion at the end of last May.
According to First Metro and University of Asia and the Pacific, the debt-to-GDP (gross domestic product) ratio is expected to ease to 60 percent at end-2023 from 60.9 percent at end-2022.
In their latest monthly report, the group forecasts that the Marcos administration might be spending less than planned this year.
“The national government’s budget deficit of P204 billion (incurred from January to April) suggests that it will ramp up spending for the rest of the year, but keep full year deficit much lower than the programmed P1.45 trillion,” the report said.
PH budget deficit narrowed by 17% in May
Earlier, both Finance Secretary Benjamin Diokno and Budget Secretary Amenah Pangandaman expressed concern of low utilization rate of national agencies’ allocations.
According to the Bureau of the Treasury (BTr), the debt stock increased in May by 1.3 percent or an additional P185.4 billion to reach a new all-time high.
PH debt hits P14.10T as of end-May 2023, says Bureau of the Treasury
The increase during that month was “due to the net issuance of domestic and external debt and the depreciation of the local currency against the US dollar,” the BTr said in a statement.
In May, foreign obligations increased by 1.2 percent or P43.73 billion to P4.51 trillion as new borrowings exceeded payments made.
At the same time, local borrowings rose by 1.4 percent or P130.67 billion to P9.59 trillion mainly because the government redeemed more securities that it issued that month.
The depreciation of the Philippine peso in May bloated the value of foreign currency denominated local debt by P1.56 billion.
-CSN
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