The government’s outstanding debt jumped P290.44 billion, or 3.4 percent, in May to P8.89 trillion from P8.6 trillion in April as the government issued more securities and borrowed debt from international agencies to fund its COVID-19 response amid a sharp drop in revenue collections.
Data from the Treasury also showed the debt on a year-on-year basis surged P975 billion, or 12.3 percent, from P7.91 trillion in May 2018.
The Treasury said the government’s debt portfolio from the end-December 2019 level increased by P1.159 trillion or 15 percent. Of the total outstanding debt stock, 32 percent was secured externally while 68 percent was borrowed domestically.
Domestic debt amounted to P6.034 trillion, P170.52 billion or 2.9 percent higher compared to the end-April level following the net issuance of domestic government securities. Domestic debt has increased by P906.44 billion or 17.7 percent since the beginning of the year.
Meanwhile, the external debt of P2.856 trillion was P119.92 billion or 4.4 percent higher from the previous month. “For May, net availment of external loans amounted to P114.01 billion as part of continued government efforts to secure financing for the COVID-19 response while local currency depreciation added P7.65 billion to the peso value of external obligations,” the Treasury said.
The Finance Department earlier said the government incurred a budget deficit of P202.1 billion in May, bringing the total budget shortfall in the first five months to P562.2 billion.
Revenue collection dipped 52 percent in May to P151.5 billion amid the prolonged enhanced community quarantine which prompted the Bureau of Internal Revenue to extend its deadline for tax filing and payments.