Philippine debt-to-GDP ratio improves to 44.2 pct in September

The Philippine share of debt to its economy fell in September as the gross domestic product (GDP) continued to grow faster than liabilities, the Department of Finance (DOF) said on Friday.

The ratio dropped despite the higher government's outstanding debt, which reached 6.087 trillion pesos (122.29 billion U.S. dollars) as of September compared to the previous year, due to weaker peso against the U.S dollar and other currencies.

Finance Undersecretary Gil Beltran reported that the government debt-to-GDP ratio further improved to 44.2 percent by end-September from 44.7 percent in the same month last year.

The debt-to-GDP ratio is projected to sustain the yearly decline until falling to about 35 percent by the end of the Duterte administration.

The Philippine government's debt as a proportion of GDP had continually dropped from 52.4 percent in 2010 to 44.7 percent in 2015.

Despite the increase in nominal terms of the government's outstanding debt in September, Beltran said he expects the debt-to-GDP ratio to remain very manageable for the final three months of the year as the economy expands at a faster pace than government liabilities.

"Strong fiscal fundamentals will continue to underpin robust economic growth during the rest of the year," he said.

The country's GDP grew by 7.0 percent in January to September, but government expenditures increased by 14.1 percent during the same period.

Beltran also said the expenditure rose to 17.96 percent of GDP from 17.09 percent last year.

Tax of the government remained at 14.21 percent at end-September, while revenue slid to 15.9 percent from 16.83 percent last year, he added. Endit