Finance Secretary Carlos Dominguez III said the share of the general government debt to gross domestic product dropped to 34.6 percent in 2016 from 36.2 percent in 2015, an indication of the country’s robust economy.
Dominguez said in a statement the improved government debt-to-GDP ratio, one of the closely-watched indicators by international rating agencies, came despite the rise of nominal debt to P5.016 trillion from P4.829 trillion in the previous year.
Data showed that of the total government debt, about 58 percent or P2.933 trillion was sourced from the domestic market while the remaining 42 percent or P2.084 trillion came from offshore markets.
“Despite the increase in level, general government debt-to-GDP ratio continued to improve on the back of careful cash and debt management as well as sturdy economic growth,” Dominguez said.
General government debt covers the outstanding obligations of the national government, the Central Bank Board of Liquidators, social security institutions and the local government units but excludes the intra-sector debt holdings of government securities including those with the Bond Sinking Fund.
Dominguez said the rise in the nominal debt was due to the 3.8-percent increase in the consolidated national government debt (net of the Bond Sinking Fund) to P5.456 trillion from P5.256 trillion a year before.
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