The government spent P225.3 billion in the first quarter to settle its debt—14 percent less than the P261.2 billion disbursed in the same period last year, according to the Bureau of Treasury (BTr).
Debt servicing continues to decline as the government strives to lengthen the maturity of its financial obligations.
From January to March, the government settled P127 billion in principal, including P74.5 billion in domestic debt and P52.5 billion in foreign loans.
Total principal payment in the first three months was 22 percent lower than the P162.8 billion settled in the same period last year.
Also, the government paid a total of P98.3 billion in interest, covering P60.6 billion in domestic debt, and P37.8 billion in foreign borrowings.
Total interest payment for the period was almost unchanged from the P98.5 billion posted in 2012.
The decline in debt servicing was observed as the government reported a 9-percent year-on-year increase in overall expenditures for the first quarter.
Budget Secretary Florencio B. Abad said on Thursday that while spending growth figures for the first quarter may appear unremarkable, “the data that defines these spending levels is actually very encouraging.”
“We were able to make dramatic improvements in our infrastructure and MOOE (maintenance and other operating expenses) disbursements, mostly because we routed more budgetary support to these items, instead of devoting more funds to tax subsidies and interest payments,” Abad said.