Data from the bureau showed the national government having spent P174.34 billion at end-February on debt amortization and interest. This is 10.7 percent lower than the P195.14 billion spent in the same two-month period last year.
The drop in the government's overall debt servicing was in spite a 2.7 percent increase in interest payments to P72.26 billion this year from P70.85 billion last year. In contrast, the amount spent on paying down the principal debt dropped 18.2 percent to P101.58 billion this year from P124.29 billion in 2012.
In February alone, debt servicing climbed to P62.616 billion this year from P60.439 billion last year. Of the amount spent for debt servicing, P44.696 billion went to amortization and P17.92 billion to interest.
As of January, the government owed P5.334 trillion, or seven percent more than a year ago's P4.993 trillion.
The government incurs debt whenever its tax revenues fall short of its expenditures, creating what is called a budget deficit.
The Aquino administration earlier said it would limit its borrowings this year to the domestic market so it can tap into the country's excess liquidity and so borrow at lower rates.
Treasury rates have slumped to record lows on account of too much money in the local financial system. Treasury bill rates for example have slumped to below one percent.
source: interaksyon.com
