THE national government’s debt service bill swelled by 65.33 percent to P93.704 billion in November 2024, as interest rates remained high amid weak peso performance.

Data from the Bureau of the Treasury (BTr) showed the government settled P93.704 billion of its debts in November 2024, higher by 65.33 percent than the P56.674 billion it paid a year ago.

“The sharp year-on-year increase in the [government’s] debt servicing bill could be attributed to higher debt maturities, still relatively higher interest rates and weaker peso exchange rate,” Rizal Commercial Banking Corporation Chief Economist Michael L. Ricafort said.

As such, interest payments increased by 37.29 percent to P66.653 billion in November 2024, up by 37.20 percent year-on-year from P48.548 billion.

About P48.929 billion in interest was settled to domestic sources, 38.25 percent lower than the P35.257 billion shelled out last year.

This includes interest payments worth P2.017 billion for Treasury bills, P29.512 billion for fixed-rate Treasury bonds, P16.872  billion for retail Treasury bonds and P528 billion for other liabilities.

Foreign debt sources were also paid P17.724 billion in interest payments, 33.35 percent higher year-on-year from P13.291 billion.

Meanwhile, amortization or the repayment of loan principal tripled to P27.051 billion in November 2024 from the P8.126 billion cleared a year ago.

The government disbursed P18.297 billion to domestic lenders while the remaining P8.754 billion went to foreign financiers.

During the January to November 2024 period, the government paid off about P1.954 trillion of its debts. This is higher by 27.33 percent than the P1.534 trillion settled during the same period in 2023.

The amount also covered 96.39 percent of the total P2.027-trillion debt service bill. This cleared P1.249 trillion in amortization and P705.334 billion in interest payments.

In the coming months, Ricafort said the future budget deficits will require additional government borrowings, further adding to the outstanding debt stock.

The government’s outstanding debt reached a record-high P16.090 trillion as of the end of November 2024.

“As more debt is incurred to bridge funding gaps, the corresponding debt servicing costs will rise, particularly as principal payments come due,” Ricafort added.