THE Philippines’s outstanding debt at the end of 2024 is projected to reach P15.841 trillion as the Marcos Jr. administration is set to borrow more money to bankroll the national government’s record-high P5.768-trillion budget for next year.
The 2024 National Expenditure Program (NEP) indicated that the expected national government’s debt stock by end-2024 is P1.218 trillion higher than the projected P14.623-trillion outstanding debt by the end of this year.
The country’s outstanding debt as of end-June rose by 10.6 percent year-on-year to P14.15 trillion, a new record high for the country, from last year’s P12.791 trillion. (Related story: https://ift.tt/FUwxdf7)
The programmed gross borrowings by the state next year is set at P2.46 trillion, P253 billion more than this year’s P2.207-trillion gross borrowing plan. Next year’s borrowing program would still follow a 75:25 mix in favor of domestic sources.
The Marcos Jr. administration would borrow P1.853 trillion next year from the domestic market through the sale of Treasury bills (T-bills) and Treasury bonds (T-bonds). The Bureau of the Treasury will tender P51.050 billion worth of T-bills and P1.802 trillion worth of T-bonds next year.
The remaining P606.850 billion would be secured by the national government from abroad through program loans (P295.845 billion), project loans (P36.005 billion) and bonds and other inflows (P275 billion).
Higher revenues
THE Marcos Jr. revenue expects better revenue collection next year is it targeting to earn P4.272 trillion from tax and non-tax measures, which is P71 billion higher than its previous target of P4.201 trillion for 2024.
The expected revenue collection is also 14.56 percent higher than this year’s P3.729-trillion target.
The 2024 NEP showed that tax revenues next year would rise by 15.15 percent to P4.073 trillion from this year’s P3.537 trillion.
Meanwhile, non-tax revenues, including privatization, by the national government in 2024, would reach P196 billion, nearly P5 billion higher than this year’s P191.1 billion programmed collections.
Budget Secretary Amenah F. Pangandaman said the revenue collection target for 2024 already incorporates the anticipated earnings from new tax measures to be passed by the current administration within the year.
The 2024 NEP indicated that the national government is expected to generate the following amount from the various tax measures: P16.999 billion from VAT on Digital Services, P8.493 billion from Passive Income and Financial Intermediary Taxation (PIFITA), P6.535 billion from excise tax on single-use plastics, P365 million from excise tax on pre-mixed alcoholic beverages, P75.743 billion from excise tax on sweetened beverages and junk food, and P12.4 billion from the mining fiscal regime.
The country’s revenue-to-GDP ratio next year is expected to rise to 16.1 percent from this year’s 15.2 percent due to higher collection. Tax revenues as a share of GDP next year is expected to account for 15.3 percent compared with this year’s 14.4 percent.
For next year, the Bureau of Internal Revenue is tasked to collect P3.046 trillion, higher than this year’s goal of P2.639 trillion while the Bureau of Customs is programmed to collect at least P1 trillion from its 2023 target of P874.2-billion.
Disbursements
THE national government is expected to disburse P5.629 trillion next year, P401 billion more than this year’s programmed P5.228 trillion.
About P4.18 trillion of the disbursements would go to current operating expenditures while P1.420 trillion would finance the national government’s capital outlays, based on the budget documents.
The national government’s debt service next year, which is expected to account for 12.1 percent of overall budget, would increase by 14.43 percent to P699.2 billion from this year’s P611 billion.
Broken down, P670.5 billion would go to interest payments while P28.7 billion would be for net lending, based on the budget documents.
The national government’s infrastructure program next year is pegged at P1.365 trillion, about 5.1 percent of GDP, which is P73 billion higher than this year’s P1.292 trillion programmed expenditure.
The national government’s budget deficit next year is anticipated to fall to P1.356 trillion or about 5.1 percent of GDP. This year’s programmed budget deficit is at P1.499 trillion or about 6.1 percent of GDP.
Image credits: Rolando Mailo/NIB-PNA
PHL outstanding debt seen rising to P15.84 trillion
Source: News Paper Radio
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