DEBT SNAPSHOT National Government Debt as of end-2010

Freedom from Debt Coalition (FDC) US$ PhP

Using US$ 1 = PhP 43.8503
http://www.fdc.ph (billion) (trillion)
NG Outstanding Debt 107.593 4.718
Total External Debt as of
Domestic Debt 61.984 2.718
end-September 2010
Treasury Bills 12.018 0.527

By Instruments
US$ PhP Treasury Bonds/Notes 49.760 2.182
Using US$ 1 = PhP 43.8503
(million) (trillion)
Loans 0.205 0.009
RP External Debt 59.771 2.621 Others 0.000 0.000

General Government 35.854 1.572 Foreign Debt 45.609 2.000

Multilateral 7.315 0.321
Monetary Authorities 1.549 0.068

By Creditors
Bilateral 10.808 0.474

Banks 5.765 0.253 Commercial 0.776 0.034

Foreign Denominated
Other Sectors 15.010 0.658 26.710 1.171
Securities

Direct Investment: NG Contingent Liabilities 12.543 0.550

1.592 0.070
Intercompany Domestic Debt 2.280 0.100

Source: Bangko Sentral ng Pilipinas (BSP) Foreign Debt 10.239 0.449

Source: Bureau of Treasury, Statistical Data Analysis Division

Note: Breakdown of totals may not sum up.
Note: Breakdown of totals may not sum up due to rounding of digits. The
total national government debt must take into account the contingent
Outstanding Public Sector Debt liabilities, so it comprises both the outstanding and the contingent debt.
as of end 2009 (in trillion pesos)

Using US$ 1 = PhP 43.8503

US$
(million)
PhP
(trillion)
Debt Facts
The Philippine debt problem is not yet over, as some people
Consolidated Public Sector Debt 129.896 5.696 would want us to believe. Let us view some statistics on the
debt situation.
Consolidated Non-financial
Public Sector Debt (includes 106.316 4.662 National Government Debt per
GOCCs like NPC, PNOC, MWSS) Filipino (using end-2010 NG Debt
and NSO projected 2010 P 50,186.26
Financial Public Corporations population)
(BSP and 3 GFIs – DBP, LBP, 50.262 2.204
TIDCORP) Debt Servicing per minute (using
data on Interest and Principal P 1,419,653.73
Minus: Intrasector-debt holdings 26.682 1.170 payments of 2010)

Source: Department of Finance, Outstanding Public Sector Debt. Public Sector as % of GDP (using
public sector debt from DoF and 64.65%
Note: Breakdown of totals may not sum up due to rounding of digits. The GDP from NSCB as of end-2009)
consolidated public sector comprises the general government sector, non-
financial public corporations, and financial public corporations, after Source: Various Government Sources
elimination of intra-debt holdings among these sectors.
Government Spending as of 2010 FACT: In 2008, Congress suspended interest
payments for loans “challenged as fraudulent, wasteful
in billion pesos per capita and/or useless”. Section XLVII of House Bill 2454 or the
General Appropriations Bill (GAB) for F.Y. 2008, the
Debt Service 746.170 7,936.86 version submitted by the Bicameral Conference
Interest Payments 276.212 2,938.01 Committee, unilaterally suspended interest payments for
11 debt cases, pending investigation:
Principal Amortization 415.821 4,423.01
a. Austrian Medical Waste Project, funded Bank Austria
Education, Culture and 240.585 2,559.06
Aktiengesellschaft (AG)
Manpower Development
b. Small Coconut Farms Development Project (SCFDP), funded
Health 50.943 541.88 by International Bank for Reconstruction and Development
Natural Resources and the 16.502 175.53 (IBRD)
Environment c. Social Expenditure Management Program 2 (SEMP2),
funded by IBRD
Agriculture and Agrarian 136.834 1,455.47
d. Secondary Education Development and Improvement
Reform
Project (SEDIP), funded by Japan Bank for International
Social Security, Welfare and 103.570 1,101.65 Cooperation (JBIC) and the Asian Development Bank (ADB)
Employment
e. Philippine Merchant Marine Academy (PMMA)
Housing and Community 10.269 109.23 Modernization Project, funded by Kreditanstalt fuer
Development Wiederaufbau (KfW) of Germany
Military 73.769 784.66 f. Telepono sa Barangay (TSB) Project, funded by Export
Development Corporation (EDC) of Canada, Credit Comm'l
Source: Department of Budget and Management Proposed Budget for de France (CC DE FRANCE)
2011 & National Statistics Office for population projection for 2010 g. Power Sector Restructuring Program (PSRP), funded by JBIC
and ADB
Note: Breakdown of totals may not sum up due to
h. Power Sector Development Program (PSDP), funded by JBIC
rounding of digits.
i. Angat Water Supply Optimization Project (AWSOP), funded
by JBIC
Debt Payments and Under-spending. For all post-EDSA j. Procurement of Search and Rescue Vessel from Tenix
governments, 1986-2008, debt service for interest Defense Pty Ltd., funded by Export Finance and Insurance
payments alone already averaged around 25.72% of the Corporation (EFIC) of Australia
national government budget. From 1986-1996 and 1999- k. Pampanga Delta Development Project, funded by JBIC
2008, interest payment exceeded education spending, l. Remaining unsecuritized loans incurred during the term of
despite the provision in the Philippine Constitution, Article former President Ferdinand Marcos
XIV, Section 5.5, stating that education is supposed to
receive the highest budgetary allocation. This is exclusive Unfortunately, then President Gloria Macapagal-Arroyo
of payments for principal amortization, which even decided to veto the Special provision, citing the automatic
exceeded interest payments. appropriations law.

Relevant Laws on Debt

• Automatic Appropriations. Contained in Section 26(B) of Book VI,

Executive Order (EO) 292, or the Revised Administrative Code of
1987. Principal amortization and interest payments for Freedom from Debt Coalition
government obligations are automatically appropriated. #11 Matimpiin Street, Barangay Pinyahan, Quezon
• Presidential Power to Unilaterally Contract Loans. Stated in Article City, Philippines 1100
VII, Section 20 of the 1987 Constitution gives the president
blanket power to contract debts.
http://www.fdc.ph, mail@fdc.ph
• Foreign Borrowings Act of 1966. Republic Act 4860 as amended
by Presidential Decree No. 1939 is the country’s primary law on
http://freedomfromdebt.wordpress.com
borrowings and foreign financing. http://www.flickr.com/photos/freedomfromdebt/
• Official Development Act of 1996 and its Implementing Rules and
Regulations (IRR). RA 8182, as amended by RA 8555, exempts +63 (02) 924-6399 (telefax)
ODA from Section 2 of RA 4860, which is the debt limit.
+63 (02) 921-1985
• Borrowing Powers of Local Government, as stipulated in Sections
295 to 303, Book II, Title IV of Republic Act 7160 or the Local
Government Code.