MANILA — The total debt payment of the government fell to nearly 32% during the first quarter this year as principal debt payments also made a significant decline during the review period, Bureau of Treasury’s latest data showed.
This year’s payment is down to P174.19 billion in the first four months from January to May 2014 with the continuous decline in the debt servicing expenditures.
The government has earmarked P791.5 billion for public debt servicing this year, an amount accounting for more than 30 percent of the proposed 2014 national budget of P2.268 trillion.
Interest payments, which amounted to P116.53 billion, 4.49 percent lower than the P122.01 billion a year ago, will be covered by P352.7 billion fund from the total budget.
Domestic debt, done through the sale of Treasury bills and bonds during weekly auctions held by the BTR will be given P248.4 billion.
On the other hand, foreign borrowings obtained from development lenders which include the World Bank, Asian Development Bank and the Japan International Cooperation Agency, World Bank and Asian Development Bank, will be allotted with P104.3 billion.
Meanwhile, compared to the P133.55 billion recorded total principal payment made a year earlier, the first four month’s record this year is 56.8 percent lower.
The government will be spending P438.8 billion, including P350.9 billion for domestic debt servicing, for principal payments this year.
With reports from Philippine Star