The National Government’s (NG) total debt rose to P10,773.83 billion as of end-March 2021, the Bureau of Treasury recently reported.
For the month, P368.00 billion, representing 3.5% increase from February 2021, was added to the total portfolio due to net issuance of government securities. Of the total debt stock, 28% were sourced externally while 72% are domestic borrowings.
NG domestic debt amounted to P7,744.61 billion, which us P381.54 billion or 5.2% higher compared to the end-February 2021 level primarily due to the net issuance of government securities including P411.79 billion in Retail Treasury Bonds (RTBs). From the end-December 2020 level, outstanding domestic debt has increased by P1,049.92 billion or 15.7%.
NG external debt of P3,029.22 billion was P13.55 billion or 0.4% lower from the previous month. For March, lower figures for external debt were due to the favorable net impact of both local- and third-currceny fluctuations against the dollar amounting to P6.82 billion and P21.88 billion, respectively. These were more than enough to offset the net availment of foreign loans amounting to P15.15 billion. From the end-December 2020 level, NG external debt is down by P71.10 billion or 2.3%.
National government debt recorded at P10,774 billion as of end-March 2021
Total NG guaranteed obligations decreased by P10.91 billion or 2.4% month-over-month to P435.81 billion in March. The lower level of guaranteed debt was due to the net redemption of both local and foreign guaranteed obligations amounting to P4.84 fluctuations further lowered the peso value of external guaranteed debt by P0.45 billion and P3.93 billion, respectively.
Last week, Budget Secretary Wendel Avisado said the Philippines is projected to post a fiscal deficit of P1.780 trillion this year, as the growth of disbursements will be bigger than that of revenues.
“The programmed disbursements for fiscal year 2021 also account for the extension of the validity of fiscal year 2020 general appropriations act until December 31, 2021, and the appropriations under Bayanihan 2 until June 30 of this year,” he said.
“For next year, the deficit will be gradually lowered to 7.3% of GDP as the government continues to implement a fiscal consolidation strategy to rebuild its fiscal space and lessen the burden from borrowings and debt,” said Avisado.