The ratio of general government debt against gross domestic product (GDP) dropped to 36.4 percent in 2014 from 39.2 percent a year earlier, the Department of Finance (DOF) said, although the absolute level of debt showed a slight increase.
The latest DOF data shows government debt stood at P4.6 trillion last year, up 1.6 percent from P4.5 trillion posted in 2013.
“The increase in national government debt was contained at a very minimal level, resulting from the narrow fiscal deficit and the further deepening of liability management program on the side of the national government,” the agency stated.
Components of the debt include the outstanding debt of the national government, the Central Bank Board of Liquidators, social security institutions and local governments, less the intra-sector holdings of government securities, including those held by the Bond Sinking Fund (BSF) and social security institutions in national government securities.
The government debt-to-GDP ratio is an indicator used by debt watchers to assess the creditworthiness of sovereigns.
“We vow to continue protecting our growth trajectory, making it as stable and sustainable as can be,” Finance Secretary Cesar Purisima, said.
Meanwhile, the outstanding public sector debt (OPSD) stood at P7.4 trillion, equivalent to 58.8 percent of GDP as of end-2014, down 7.5 percentage points from 66.3 percent recorded in 2013.
OPSD includes the general government debt, borrowings of the 14 non-financial public corporations and the financial public corporations, net of intra-sector debt holdings.