The country’s debt increased year on year in December 2024 due to massive borrowings to cover budget deficits and the peso’s slump against the dollar, pushing the debt-to-gross domestic product ratio past targets.
Latest data from the Bureau of Treasury (BTr) showed on Tuesday, February 04, that the government’s debt reached P16.05 trillion last December 2024, marking a P1.44 trillion or 9.8 percent increase from the previous year.
Month-on-month, the debt slightly declined by 0.2 percent from P16.090 trillion.
The Treasury said the government’s aggressive borrowing to fund budget deficits and the weakening peso has pushed the country’s debt-to-GDP ratio to 60.7 percent—surpassing fiscal targets.
“The year-on-year (YoY) increase in the debt stock is primarily attributed to the P1.31 trillion net issuance of debt instruments in line with the government’s deficit program, as well as the P208.73 billion valuation effect of US dollar strengthening,” the Treasury said.
In December, the peso weakened to P57.847 against the US dollar from P55.418 per dollar in the previous year.
Domestic borrowings, which accounted for 68.09 percent of total debt, increased year-on-year by 9.1 percent to P10.930 trillion in December from P10.017 trillion the previous year.
Government securities accounted for nearly all of domestic debt in December 2024 at P10.930 trillion, up by 9.1 percent from P10.017 trillion the previous year.
The government securities also increased month-on-month by 0.1 percent from P10.921 trillion last November 2024.
Meanwhile, the country’s external loans increased year-on-year by 11.4 percent to P5.120 trillion in December 2024 from P4.598 trillion the previous year.
However, the government’s foreign debt declined month-on-month by 0.9 percent from P5.169 trillion last November 2024.
The government attributed the year-on-year increase to P401.74 billion in net external debt availments, while peso depreciation against the US dollar increased external debt valuation by P201.55 billion.
Government securities during the month consisted of P2.306 trillion in US dollar bonds, P206.72 billion in Euro bonds, P55.87 billion in Japanese yen bonds, P57.85 billion in Islamic certificates and P54.77 billion in peso global bonds. (TCSP)
