As of end-2014, the General Government Debt was recorded at P4.6 trillion, a mere 1.6% increase from the P4.5 trillion posted in 2013. The increase in National Government debt was contained at a very minimal level resulting from the narrow fiscal deficit and the further deepening of liability management program on the side of the national government. GDP grew by 9.4% for the said period resulting in an improved government debt (GG) to GDP ratio of 36.4%, a 2.8 percentage points (ppt) decrease from the previous year level of 39.2%. The year-end performance was 0.8 ppt better than that as of the 3rd quarter. NG debt, net of bond sinking holdings was 39.8% of GDP in 2014 vs. 42.7% in 2013.
GG debt covers National Government (NG) debt, the borrowings of the CB-BOL, Social Security Institutions (SSIs), and Local Government Units (LGUs) less intra-sector debt holdings such as investments of the Bond Sinking Fund and social security institutions in National Government securities. The General Government debt held a 60:40 ratio in favor of domestic sources for 2014. Local currency bias in outstanding obligations is in line with our effort to mitigate risk on our debt servicing from adverse foreign exchange fluctuations.
Outstanding Public Sector Debt (OPSD) which includes the general government debt, borrowings of the 14 non-financial public corporations and the financial public corporations, net of intra-sector debt holdings, was registered at P7.4 trillion, equivalent to 58.8% of GDP as of end-2014. The ratio is 7.5 percentage points (ppt) lower from 66.3% recorded in 2013. The improved financial performance of the public corporations along with higher economic growth resulted in the drop of their net borrowings as a share of GDP to 22.4% from 27.1% in 2013.