Outstanding national debt hits P5.213 trillion

The government’s total outstanding debt climbed to P5.213 trillion as of end-September 2012, seven percent higher than the debt in the same period the year before, said the Bureau of the Treasury on Tuesday. Domestic debt grew to P3.184 trillion in the period, P404 billion higher year-on-year, while foreign debt fell to P2.028 trillion from P2.089 trillion as of end-September 2011. The government has been decreasing foreign borrowing to protect the economy from foreign exchange fluctuations. The government’s outstanding debt represents direct and assumed loans incurred primarily to finance public development programs in areas such as health and education. The government’s total guaranteed debt, or debt incurred by state agencies and corporations but guaranteed by the government, declined to P540 billion as of end-September 2012, down 7.36 percent from P583 billion a year ago. The guaranteed domestic debt fell by P6.27 billion to P155.37 billion as of end-September 2012. Guaranteed foreign debt also declined, by P36 billion to P385 billion. The country’s debt stock is expected to reach P5.52 trillion by the end of 2012 and rise to P5.91 trillion in 2013. — BM, GMA News