Govt posts P5.7 trillion in public sector debt
THE government ended 2009 with an outstanding public sector debt of P5.7 trillion, which represents 74.2 percent of the gross domestic product (GDP), outpacing the 71.1 percent GDP ratio in 2008, government data showed.
The P5.7 trillion public sector debt represents an increase of 8.1 percent or an expansion of P429.1 billion from the 2008 debt of P5.3 trillion.
Total domestic debt of the public sector increased by 15.6 percent reaching P2.7 trillion while total foreign debt increased by 2.2 percent to P3 trillion.
The higher debt ratio was mainly due to the jump in the debt stocks of the 14 Monitored Non-Financial Government Corporations (MNFGCs), most of which are losing entities, and the Bangko Sentral ng Pilipinas (BSP) by 0.5 percent and 12.5 percent, respectively.
Total general government debts, which include the Bond Sinking Fund, Social Security Institutions (SSIs) and Local Government Units (LGUs) climbed by 4.4 percent from the previous year’s level of P3.4 trillion or 46.3 percent of GDP.
The non-financial public sector debt posted a total debt of P4.7 trillion equivalent to 60.7 percent of GDP. This amount represents a 3.7-percent increase from the previous year’s P4.5-trillion figure.
As of December 2009, 52.7 percent debt is owed to foreign creditors and the remaining 47.3 percent is owed to domestic creditors of the public sector. Dino Ng