BUSINESS
Advocates Philippines
National Government Debt Recorded At P13.91 Trillion As Of End-April 2023
MANILA, Philippines, 31 May 2023 – The National Government (NG) of the Philippines saw its total outstanding debt reach P13.91 trillion as of the end of April 2023. This represents an increase of P54.24 billion or 0.4% from the previous month's debt level. The rise can be attributed to the net issuance of external debt and the depreciation of the local currency against the US dollar.
Out of the total debt stock, 32.0% was sourced externally, while 68.0% comprised domestic borrowings. The NG's domestic debt amounted to P9.46 trillion, which is P55.32 billion or 0.6% lower compared to the end of March 2023. This decrease was primarily due to the net redemption of domestic securities worth P57.79 billion. However, the decline was slightly offset by the impact of peso depreciation against the US dollar, which added P2.47 billion to the onshore foreign currency-denominated securities. Since the end of December 2022, NG's domestic debt has increased by P249.45 billion or 2.7%.
On the other hand, the NG's external debt amounted to P4.45 trillion, which marks a P109.56 billion or 2.5% increase from the previous month. The rise in external debt for April can be attributed to the net availment of external loans amounting to P27.98 billion and the impact of local-currency depreciation against the US dollar, which added P94.28 billion to the debt. However, third-currency adjustments against the US dollar reduced the peso value of foreign currency debt by P12.30 billion. NG's external debt has increased by P242.83 billion or 5.8% since the end of December 2022.
In terms of guaranteed obligations, the NG saw a decrease of P3.42 billion or 0.9% month-over-month, bringing the total guaranteed debt to P380.69 billion as of the end of April 2023. The decline in guaranteed debt can be attributed to the net repayment of domestic guarantees amounting to P5.51 billion and third-currency adjustments totaling P1.87 billion. However, the impact of local currency depreciation amounting to P3.95 billion tempered the reduction. Since the end of December 2022, NG's guaranteed debt has decreased by P18.35 billion or 4.6%.
The increase in the NG's total outstanding debt highlights the challenges faced by the government in managing its finances amid economic uncertainties and the ongoing COVID-19 pandemic. The government will need to carefully navigate these circumstances to ensure fiscal sustainability and long-term economic growth.
Out of the total debt stock, 32.0% was sourced externally, while 68.0% comprised domestic borrowings. The NG's domestic debt amounted to P9.46 trillion, which is P55.32 billion or 0.6% lower compared to the end of March 2023. This decrease was primarily due to the net redemption of domestic securities worth P57.79 billion. However, the decline was slightly offset by the impact of peso depreciation against the US dollar, which added P2.47 billion to the onshore foreign currency-denominated securities. Since the end of December 2022, NG's domestic debt has increased by P249.45 billion or 2.7%.
On the other hand, the NG's external debt amounted to P4.45 trillion, which marks a P109.56 billion or 2.5% increase from the previous month. The rise in external debt for April can be attributed to the net availment of external loans amounting to P27.98 billion and the impact of local-currency depreciation against the US dollar, which added P94.28 billion to the debt. However, third-currency adjustments against the US dollar reduced the peso value of foreign currency debt by P12.30 billion. NG's external debt has increased by P242.83 billion or 5.8% since the end of December 2022.
In terms of guaranteed obligations, the NG saw a decrease of P3.42 billion or 0.9% month-over-month, bringing the total guaranteed debt to P380.69 billion as of the end of April 2023. The decline in guaranteed debt can be attributed to the net repayment of domestic guarantees amounting to P5.51 billion and third-currency adjustments totaling P1.87 billion. However, the impact of local currency depreciation amounting to P3.95 billion tempered the reduction. Since the end of December 2022, NG's guaranteed debt has decreased by P18.35 billion or 4.6%.
The increase in the NG's total outstanding debt highlights the challenges faced by the government in managing its finances amid economic uncertainties and the ongoing COVID-19 pandemic. The government will need to carefully navigate these circumstances to ensure fiscal sustainability and long-term economic growth.
May 31, 2023
