THE national government's outstanding debt hit a new high of P15.18 trillion in February and is now P1.43 trillion more than it was a year earlier, the Bureau of the Treasury reported on Wednesday.

A total of P388.51 billion was added from January, the Treasury said in a statement, primarily due to domestic debt issuances that were partially tempered by the effect of the stronger peso on the valuation of foreign debt.

As of the first two months of 2024, the government's outstanding debt was P562.43 billion higher from the start of the year.

In percentage terms, the debt rose by 2.63 percent from January, 3.85 percent from end-December 2023, and 10.37 percent from a year earlier.

Domestic borrowings comprised the bulk or 69.68 percent of outstanding debt at P10.58 trillion.

This was P414.51 billion (4.08 percent) higher compared to the end-January level, P558.77 billion up from end-December (5.58 percent) and P1.13 trillion (12.02 percent) more compared to a year earlier.

In February alone, "domestic debt gross issuance totaled P708.74 billion including the P584.86-billion five-year retail Treasury bonds issuance," the Treasury said.

Principal payments totaled P293.57 billion, leading to a net issuance of P415.17 billion.

A stronger peso, meanwhile, reduced domestic debt by P0.66 billion through the downward revaluation of borrowings denominated in foreign currencies.

External debt — 30.32 percent of total outstanding debt as of end-February — totaled P4.6 trillion, 0.56 percent or P26 billion lower than the previous month.

The decline was attributed to "favorable foreign exchange movements by both local- and third-currencies" against the dollar, amounting to P18.79 billion and P9.96 billion, respectively.

"These more than offset the P2.75 billion net availment of foreign loans," the Treasury added.

Compared to the end of December 2023, external debt was P3.67 billion or 0.08 percent higher, while year on year, it was P291.41 billion or 6.76 percent higher.

Guaranteed obligations, meanwhile, decreased by 1.07 percent or P3.73 billion to P344.93 billion as of end-February from a month earlier.

This was attributed to a net repayment of external guarantees totaling P3.23 billion, along with positive foreign exchange movements in both local and third currencies against the dollar that amounted to P0.69 billion and P1.10 billion, respectively.

"The net adjustment in domestic guarantees further offset P1.29 billion from the outstanding balance as of end-February 2024," the Treasury said.

Guaranteed debt fell by 1.29 percent or P4.51 billion from the end of December and by 10.91 percent or P42.6 billion year on year.

Sought for comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said, "The new record high in the outstanding national government debt in recent months may be attributed to continued budget deficits amid higher inflation that also bloated government expenditures."

"The increase in the government's debt would still remain sustainable in the coming years for as long as the debt-to-GDP (gross domestic product) ratio remains around or better if below 60 percent," he added.

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