GOVT DEBT RISES BY 6.9% TO P5.45 TRILLION IN JUNE THIS YEAR
MANILA, AUGUST 19, 2013 (PHILSTAR) By Jovan Cerda - The national government's total debt grew by 6.9 percent to P5.45 trillion in June this year, the Bureau of Treasury announced on Friday.
The total amount translates to an estimated P54,500 worth of debt for every Filipino.
Month-on-month, government debt rose by 1.6 percent from May's P5.36 trillion.
The bureau said local sources accounted for P3.5 trillion of the debt while foreign sources accounted for P1.95 trillion.
Domestic debt rose by 14.8 percent from P3.05 trillion last year and 1.2 percent from the previous month's P3.46 trillion.
The Treasury said the month-on-month jump came from the “combined effect of the P42 billion net issuance of government securities, the P1 billion impact on multicurrency RTBs (retail treasury bond) of the peso depreciation against the US dollar and the euro, and a P2 billion reversion of national government-assumed domestic liabilities, which have been inactive for 25 years.”
Your share of the national debt at end-June: P59,250 By: Rain Castro, InterAksyon.com August 17, 2013 8:26 PM
InterAksyon.com means BUSINESS
MANILA - Each Filipino's share in the government's debt burden last June got a little heavier from a month ago.
Data from the Bureau of Treasury showed the government's unpaid debt rising by seven percent from P5.101 trillion in June last year to P5.451 trillion in the same month this year.
With an estimated 92 million Filipinos, the per capita burden at end-June amounts to P59,250 or P946 more than the P58,304 at end-May.
The increase in every Pinoy's share in the national debt stemmed from the 14.8 percent hike in the amount of money the government borrowed from local sources, mostly banks and other financial institutions that regularly participate in the Treasury's auction.
Sixty-four out of every P100 in government debt outstanding at end-June was owed to local lenders, with the remaining P36 due foreign creditors.
The higher borrowing from local sources was tempered by the five percent drop in fresh debt incurred from foreigners.
The government borrows money to make up for shortfalls in tax revenues, which leads to budget deficits. At end-May, the fiscal gap stood at P42.83 billion.
Besides financing the deficit, government takes out fresh loans to pay down maturing obligations, which reached P146.38 billion at end-May.
The government expects its debt to reach P5.779 trillion this year, an amount equal to 48 percent of the country's gross domestic product (GDP).
A measure of economic performance, GDP is the amount of final goods and services produced in the country.
Chief News Editor: Sol Jose Vanzi
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