RP allots P681.5 B for debt service next year
By Iris C. Gonzales Updated September 03, 2008 12:00 AM
The government has programmed to spend P681.516 billion for debt service payments in 2009, 7.1 percent higher than this year’s allotment of P636.075 billion, the Bureau of the Treasury (BTr) reported yesterday.
Of the amount, the government plans to spend P482.138 billion for domestic debts and P200.378 billion for foreign loans.
The P482.138-billion debt service allocation for domestic obligations covers payments for principal amortization, amounting to P290.031 billion and interest payments, amounting to P191.107 billion.
On the other hand, the P200.378-billion debt service allocation for foreign loans covers payments for principal amortization amounting to P88.835 billion and interest payments of P111.543 billion.
Next year’s debt service allocation is P45.441 billion higher than this year’s payments amounting to P636.075 billion.
This amount comprises of payments for domestic obligations (P448.357 billion) and payments for foreign loans (P187.718 billion), data further showed.
The P448.357-billion debt service allocation for domestic obligations covers principal amortization amounting to P264.667 billion and interest payments of P81.305 billion.
On the other hand, the P187.718-billion debt service allocation for foreign loans covers principal amortization (P81.305 billion) and interest payments (P106.413 billion).
The government has been trying to reduce its debt service payments to have more funds for the more necessary expenditures such as infrastructure and social services spending.
However, fiscal authorities have decided to postpone the government’s fiscal consolidation program due to the difficult global economic tide this year. As such, the government expects to incur a deficit of P75 billion this year as it has already postponed its balanced budget goal to 2010.
For 2009, the government is looking at incurring a deficit of P40 billion. The government is seeking a budget of the P1.415 trillion for 2009, which is premised on revenues of P1.393 trillion.
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