AP FILE PHOTO
MANILA, Philippines—The Aquino administration’s efforts to get its finances in order continued to pay dividends as official data released Friday showed the state’s indebtedness, measured as a proportion of the gross domestic product, declined at the end of last year.
The general government’s debt relative to the size of the economy declined to below 40 percent last December as a result of more efficient spending and prepayment of obligations, the Department of Finance reported this week.
“The continuing trend of decreasing… debt shows the government will ensure sustained fiscal space throughout the medium term,” the DOF said in a statement.
As of December 2013, the General Government debt stood at P4.53 trillion or 39.2 percent of gross domestic product.
The year ended with a lower debt-to-GDP ratio compared with that in December 2012, which stood at 40.6 percent or the equivalent of P4.29 trillion.
While the absolute level of debt increased in the period, this was outpaced by the growth of the economy, which expanded by 7.2 percent last year. The debt ratio was also an improvement from 2009’s 44.3 percent.