PH debt climbs to P12.76 trillion in April

The Philippines' total outstanding debt reached P12.76 trillion as of end-April 2022, an increase of 0.7% or P83.4 billion from the previous month.

This rise in debt is attributed to the net issuance of government securities and the depreciation of the Philippine peso against the US dollar.

Domestic borrowings accounted for 70% of the total debt, amounting to P8.93 trillion, while external debt comprised the remaining 30% at P3.83 trillion.

The country's debt-to-GDP ratio stood at over 63% in March, slightly exceeding the global standard of 60% which is considered manageable by multilateral lenders.

President Rodrigo Duterte's administration has more than doubled the national debt since June 2016, partly due to infrastructure funding amid the pandemic.

Outgoing Bangko Sentral ng Pilipinas Governor and incoming Finance Secretary Benjamin Diokno stated that a debt-to-GDP ratio slightly above 60% is not a cause for concern if the country sustains a 6% to 7% growth rate.

To manage the debt, outgoing Finance Secretary Carlos Dominguez III proposed that the incoming Marcos administration implement new taxes, defer tax reductions, and repeal certain tax exemptions, which could yield an estimated P349.3 billion annually.