Local borrowings push debt-to-GDP ratio up 

DOMESTIC borrowings by the national government pushed the country’s debt-to-gross domestic product ratio higher at end-March, the Department of Finance (DoF) reported on Thursday. National government’s debt as a percentage of…READ

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DOMESTIC borrowings by the national government pushed the country’s debt-to-gross domestic product ratio higher at end-March, the Department of Finance (DoF) reported on Thursday.

National government’s debt as a percentage of GDP rose to 44 percent as of end-March this year from 42.6 percent a year ago, which the department attributed to the increase in domestic debt.

A report released by the Bureau of Treasury showed that the national government’s outstanding debt ballooned to a record-high P7.802 trillion in March.

Domestic borrowings totaling P5.196 trillion — up 6.1 percent from the previous month — accounted for the bulk of outstanding debt.

This resulted in domestic debt-to-GDP-ratio of 29.3 percent as of end-March, higher from a year earlier’s 27.6 percent “as the government shifted to local sources of borrowing to reduce foreign exchange risks,” the Finance department said. MAYVELIN U. CARABALLO 

 

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