The general government (GG) debt showed significant improvement as of the end-June this year, the Department of Finance (DoF) said Friday.

“The country’s consolidated (GG) debt stood at P6.8 trillion in the second quarter of 2019, an increase of 0.7 percent form the first quarter level of P6.7 trillion,” the DoF said in a statement.

“As a percentage of gross domestic product (GDP), GG debt registered at 37.6 percent, down by 0.4 percentage points from the 38 percent recorded as of the first quarter of 2019 and 1.5 percentage points increase from last year’s level of 36.1 percent,” it added.

Despite being lower on a quarterly basis, the latest GG obligation reflects a 1.5 percentage-point increase from last year’s level of 36.1 percent and of the overall stock, bulk or 62.9 percent are domestic borrowings while the remaining 37.1 percent or P2.5 trillion were external obligations.

“National government (NG) debt net of the Bond Sinking Fund posted at P7.3 trillion, a slight increase of 0.8 percent from the first quarter level of P7.2 trillion and an increase of 12.7 percent from the same quarter level last year,” the Finance department said.

“Domestic debt grew by 1.9 percent while external debt decreased by 1.2 percent compared with the first quarter of 2019,” it added.

GG debt includes the outstanding debt of the NG, the Central Bank Board of Liquidators, Social Security Institutions and local government units, minus intra-sector debt holdings of government securities including those held by the bond sinking fund.