Nat'l debt to balloon to P17.35 T by 2025

Government borrowings will slow as the economy expands, but the country’s total debt will still balloon to a record P17.35 trillion next year amid the prevailing high interest rate environment.

- LOUISE MAUREEN SIMEON

Based on the Department of Budget and Management's Budget of Expenditures and Sources of Financing (BESF) following the submission of the proposed P6.352-trillion 2025 budget, outstanding debt would reach P16.06 trillion by yearend and further increase to P17.35 trillion by end-2025.

In terms of growth, however, the continued slowdown will remain, although at a smaller rate by next year.

Projected debt is expected to pick up by 9.8 percent to P16.06 trillion by the end of this year and will grow by eight percent to hit P17.35 trillion by 2025.

Currently, the national debt stock is at its highest level at P15.3 trillion as of end-May.

The debt pile is seen increasing even if gross borrowings are seen slightly declining by a percentage to P2.55 trillion from P2.57 trillion.

In a briefing yesterday, DBM principal economist and Undersecretary Joselito Basilio said the fiscal consolidation plan of the government would help bring down the debt as a percentage of gross domestic product (GDP).

"We are accelerating our payments due to better tax collections and more business transactions," Basilio said.