The national government’s outstanding debt is seen to exceed the P10-trillion mark by the end of the year, as the country had to borrow more in recent months to fund its coronavirus disease 2019 (COVID-19) response.
According to the proposed Budget of Expenditures and Sources of Financing (BESF) for fiscal year 2021 posted in the Department of Budget and Management’s website, the outstanding debt by end-2020 is seen to reach P10.16 trillion, a 31.42 percent increase from the P7.731 trillion recorded as of the end of the previous year.
It is also higher than the P8.77 trillion initially programmed this year under the BESF for fiscal year 2020.
Of the said amount, P6.9 trillion will be accounted for by domestic debt, while the remaining P3.25 trillion will be the share of external loans.
According to the Bureau of the Treasury’s most recent report, the national government’s outstanding debt has breached the P9-trillion mark as of the end of the first semester.
The outstanding debt level has reached P9.05 trillion, jumping 15.1 percent from the end-June 2019 level of P7.87 trillion.
It also rose by 1.8 percent from its end-May 2020 level of P8.89 trillion, primarily due to the net issuance and availment of domestic and external financing.
The government had to increase borrowings amid the immediate need to fund measures to address the COVID-19, while revenue collections weakened due to the implementation of quarantine measures which limited economic activity.
Meanwhile, the BESF for 2021 also showed that outstanding debt is seen to increase to P11.98 trillion by the end of next year.
Of the amount, P3.49 trillion will be sourced externally while P8.49 trillion are domestic debt.
Next year, gross borrowings is projected to reach P3.025 trillion, higher than the P3 trillion programmed for 2020.