Philippines: Debt-to-GDP ratio down to 41.8% in March

• May 26, 2017

MANILA, Philippines –  The proportion of the country’s debt to gross domestic product (GDP) further declined to 41.87 percent as of end-March from 43.56 percent a year ago due to fiscal reforms initiated by the government, according to the Department of Finance (DOF).

The latest figure was also an improvement from the 42.06 percent debt-to-GDP ratio posted in end-December last year.

“Fiscal reforms, including debt management reforms led to the continuing drop in the debt-to-GDP ratio,” Finance Undersecretary Gil Beltran said.

The National Economic Development Authority reported the economy grew 6.4 percent in the first quarter, outpacing the 4.9 percent increase in the national government’s outstanding debt at P6.19 trillion as of March.

The ratio of offshore debt to GDP also declined to 15.03 percent from 15.19 percent as of first quarter last year. However, it was higher as compared to the end-December level of 12.18 percent.

Aside from debt, the national government’s budget deficit in the first three months settled at 2.32 percent of the GDP, lower than the previous year’s 3.44 percent. It was also within the administration’s three percent deficit ceiling target.

Meanwhile, the government’s tax effort – the proportion of taxes and duties to the GDP – in the first quarter climbed to 13.41 percent from 12.99 percent reported the same period last year.

Beltran attributed this to the improved collection efficiency of the Bureau of Internal Revenue and the Bureau of Customs, two of the country’s largest tax agencies.

The BIR’s tax effort as of end-March improved to 10.36 percent, while the BOC’s rose to 2.91 percent. Tax effort of other revenue generating agencies, meanwhile, remained steady at 0.14 percent.

Source: http://www.philstar.com/business/2017/05/26/1703528/debt-gdp-ratio-down-41.8-march