Govt debt accelerates to new record of P8.89T


THE national government’s outstanding debt rose to an all-time high of P8.89 trillion at the end of May as it ramped up its domestic and external borrowings to fund its coronavirus disease 2019 (Covid-19) pandemic response, the Bureau of the Treasury (BTr) reported.

In a statement released on Tuesday, the Treasury bureau said the amount was up by 3.4 percent or P290.53 billion from the P8.60 trillion in April.

It added that the acceleration “was primarily due to the increased reliance on government securities issuance and external loan availments to fund Covid-19 response amid a sharp drop in revenue collections.”

Of the total debt stock, 32 percent was generated from external creditors while 68 percent was raised domestically.

Domestic borrowings totaled P6.03 trillion or 2.9 percent higher than the end-April figure of P5.86 trillion, while external debt increased by 4.4 percent to P2.85 trillion.

Outstanding debt last year was P7.91 trillion — P5.25 trillion of which was domestic while P2.65 trillion was foreign.

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