The national government’s debt-to-gross domestic product (GDP) ratio inched up in 2022, but still fell within the government’s target.
According to data released by the Bureau of the Treasury, the national government’s debt-to-GDP as of end-2022 stood at 60.9 percent, up versus the 60.4 percent recorded in 2021.
The Department of Finance (DOF) said in a statement the figure as of 2022 is lower than the 61.8 percent target that was set in the Medium-Term Fiscal Framework (MTFF).
“Our medium-term fiscal plan and exemplary GDP growth have allowed us to outpace our borrowings. This gives us confidence that we can reach our targets by 2025,” said Finance Secretary Benjamin Diokno.
Through the MTFF, the national government aims to bring down the debt-to-GDP ratio to less than 60 percent by 2025 and further down to 51.1 percent by 2028; reduce the deficit-to-GDP ratio to three percent by 2028; and maintain high infrastructure spending at five to six percent of GDP annually.
Meanwhile, the BTr said in a separate statement the debt-to-GDP ratio as of 2022 also improved from the 63.7 percent recorded as of the third quarter of the same year. It also mentioned it being below the 61.8 percent goal.
“This reflects the consistent drive to bolster debt sustainability through prudent cash and debt management backed by resurgent economic growth,” the BTr said.
In nominal terms, the national government’s total outstanding debt settled at P13.42 trillion as of year-end 2022.
It grew by P1.69 trillion or 14.4 percent from end-2021’s P11.73 trillion.
Month-on-month, it posted a decline of 1.7 percent, which the BTr said was primarily due to the effect of local currency appreciation and the net redemption of domestic government securities.
Out of the P13.4 trillion total outstanding debt as of end-2022, domestic debt accounted for P9.2 trillion or 68.6 percent of the total debt stock, while external debt made up the remaining P4.2 trillion or 31.4 percent of the total debt stock.
