The government spent P400.546 billion to settle its debt in the first eight months, down 4.2 percent from P418.134 billion a year ago, according to the Bureau of Treasury.
Data from the Treasury showed debt interest payments fell 3.8 percent in January to August to P217.174 billion from P225.657 billion recorded in the same period last year.
Interest payments to local creditors declined to P152.329 billion, while interest payments to foreign creditors rose to P77.469 billion.
Payments for debt amortization also dropped 4.8 percent in the eight-month period to P183.372 billion from P192.567 billion recorded a year earlier.
Of the total amortization, principal payments in the local market went down to P104.901 billion, while principal payments to foreign creditors increased to P78.47 billion.
The Treasury said in August alone, debt services jumped 89.8 percent to P46.763 billion as both interest payments and principal amortization increased.
Interest payments climbed 42.4 percent in August this year to P23.442 billion, while amortization rose nearly thrice to P23.321 billion.
The government’s outstanding obligations breached the P6-trillion mark as of the end of September this year.
Meanwhile, the national government’s borrowings jumped to P307.8 billion in the first eight months of 2015, following a significant increase in financing sourced from the domestic market.
Latest data showed the government’s borrowings as of end-August 2016 climbed 22 percent from P252.25 billion recorded in the same period in 2015.
Financing from the foreign market fell 21.21 percent to P82.037 billion, while financing from the local market rose 52.4 percent to P225.763 billion.
Of the total external gross borrowings, P12.496 billion was coursed through project loans and P28.284 billion through program loans.
The Finance Department earlier said it would maintain its bias for local borrowings to shield the government from external shocks brought about by foreign exchange fluctuations.
The government intends to borrow P538.373 billion from the local market and P157.071 billion from external sources.
The national government will also borrow less next year to fund next year’s budget proposal of P3.35 trillion.
A proposed budget submitted by Budget Secretary Benjamin Diokno to the House of Representatives showed the government planned to borrow P631.3 billion in 2017. The intended borrowing program would be 9.2 percent less than the P695.4 programmed borrowing this year.