The national government’s total debt payments in the first eight months of the year jumped 70.07 percent as amortization significantly rose from the previous year’s level, data released by the Bureau of the Treasury (BTr) showed.
According to the latest cash operations report, the national government’s debt payments in January to August stood at P1.16 trillion, much higher than the P682.85 billion recorded during the same period a year ago.
Amortization rose by 125.41 percent, to P772.64 billion from the P342.77 billion paid out in January to August 2022.
Interest payments as of August totaled to P388.68 billion, which went up 14.29 percent from the P340.08 billion paid out as of the same period the previous year.
In a report, the Department of Budget and Management (DBM) said interest payments as of end-August rose due to coupon payment for global bonds, retail treasury bonds and new/additional issuances of fixed rate treasury bonds, loan availments, foreign exchange fluctuations and the impact of higher interest rates.
In August alone, debt payments amounted to P189.03 billion, recording a 176.77 percent increase from the P68.3 billion in the same period in 2022.
Amortization amounted to P146.36 billion which surged from the P37.52 billion recorded a year ago.
Interest payments meanwhile totaled to P42.67 billion, also 38.65 percent up from the August 2022 level of P30.77 billion.
The DBM said interest payments increased for the month due to coupon payments for issuances of retail treasury bonds this year and fixed rate treasury bonds/benchmark bonds in 2022, as well as the impact of higher domestic and foreign interest rates.
The BTr earlier reported the national government’s deficit widened in August as revenues declined while expenditures rose year-on-year.
The national government’s budget deficit climbed to P133 billion in August 2023, 84.63 percent higher compared to last year’s budget gap of P72 billion for the same month.
The fiscal outcome is attributed to the 6.58 percent drop in revenue collection coupled with the 9.66 percent expenditure growth.
This brings the year-to-date fiscal performance to a budget deficit of P732.5 billion, 12.06 percent down from the year ago level of P833 billion.
