Government debt to breach P10 trillion by yearend

MANILA, Philippines — The country’s outstanding debt may reach more than P10 trillion by December and further swell to nearly P12 trillion next year as the government ramps up its borrowings amid the coronavirus pandemic, according to the Department of Budget and Management.

The budget department said the national government’s debt stock may rise  to P10.16 trillion by December from P7.73 trillion in the same period last year.

The figure is programmed to rise further to P11.98 trillion by the end of 2021.

The government is borrowing more to bridge the deficit in its budget, which is expected to widen to P1.82 trillion or 9.6 percent of this year’s gross domestic product (GDP) due to higher spending driven by coronavirus response efforts amid weaker revenue generation.

The budget shortfall is expected to slightly ease to P1.75 trillion or 8.5 percent of   GDP in  2021, but still higher than the original program of 3.2 percent.

For 2020, the country is programmed to borrow P3 trillion from domestic and external sources. Another P3.03 trillion is in the borrowing program for 2021.

Economic managers earlier expressed confidence the government’s debt would be kept within the  60-percent internationally recommended threshold.