Forex fluctuations boost PHL govt debt to P4.719T

The National Government’s debt stock grew to P4.719 trillion as of end-November 2010, because of the depreciation of the peso against the dollar which pushed foreign debt higher, the Bureau of the Treasury (BTr) reported Thursday. As of November 2010, the national government’s debt increased by P40 billion or 0.8 percent from the end-October 2010 debt level of P4.679 trillion, the BTr said. Theoretically, at P4.719 trillion, each of the 94 million Filipinos carry a debt burden of P50,202. Treasury Bureau data also showed that of the national government's debt stock, P2.002 trillion or 42.4 percent is owed to foreign creditors and P2.717 trillion or 57.6 percent to domestic lenders. The national government’s debt increased by P20 billion, which the bureau attributed the depreciation of the peso against the US dollar in October-November 2009 However, the bureau said, this was partially offset by the P4 billion in net repayment and P27 billion depreciation of third currencies against the US dollar. Similarly, domestic debt moved up by P20 billion month-on-month as the national government issued more Treasury, notes and bills than it redeemed. On the other hand, the national government's contingent debt, which consists mainly of the guarantees it issued, rose by P1 billion to P559 billion from end-October to end-November. “The increase was attributed to the foreign contingent obligations due to the combined effects of the P12 billion depreciation of the peso against the US dollar, P1 billion net repayment and P10 billion depreciation of the third currencies against the US dollar," the bureau explained. The government borrows from local and foreign lenders to fill its budgetary needs. The budget deficit is expected to have stayed within the P325-billion deficit ceiling for 2010 or 3.9 percent of the gross domestic product (GDP). Officials said the budget gap likely hit P310 billion last year. This year, finance officials are bracing for a deficit of about P290 billion or 3.3 percent of GDP. — With Timothy James Dimacali/VS, GMA News