By FELIPE F. SALVOSA II, BusinessWorld Senior Reporter

The government’s outstanding debt went down by 1% in November to P3.91 trillion from P3.95 trillion in October as the value of foreign liabilities continued to decline with a stronger peso against the dollar.

Foreign debt declined by 3.2% to P1.75 trillion accounting for 45% of the debt stock. The P57-billion reduction was brought about by the appreciation of the peso, P34 billion; appreciation of other currencies versus the dollar, P19 billion; and repayments, P4 billion.

Domestic debt, which is 55% of total debt, went up by 0.7% to P2.16 trillion, with the government issuing P16.03 billion in securities.

With the population estimated at 85.2 million, each individual is now indebted by P45,892.01. The outstanding debt is about three-fourths of the national economic output as measured by gross domestic product.

The government intends to borrow less this year at P531.6 billion from P576.4 billion in 2005. Repayments will be higher at P381.7 billion from P360.7 billion, resulting in a net borrowing requirement of P150 billion.

Foreign commercial borrowings will be the same as in 2005 at $3.1 billion, but National Treasurer Omar T. Cruz earlier said this could still be lowered because of favorable exchange rates.

The Treasury, meanwhile, said contingent debts, mostly guaranteed by the central government, declined to P592 billion in November from P602 billion in October.

Foreign contingent debts went down by P21 billion as a result of repayments and favorable currency movements. Domestic contingent liabilities, however, went up by P11 billion.

Contingent debts are counted separately but become part of outstanding debt once state firms that have government guarantee become in default.