The Philippine government’s debt rose by 4.2 percent last year as the Arroyo administration turned up its borrowings to make up for weak tax collections.

Data from the Bureau of Treasury showed the government’s debt increased by P175.7 billion year on year to P4.4 trillion. The end-December figure was also 0.6 percent lower than the previous month.

Over half of the total outstanding amount, or P2.47 trillion, was owed to domestic creditors, while the balance of P1.93 trillion was due foreign lenders.

The domestic component of the government debt inched up 2.3 percent from a year ago, and the foreign component rose by a faster 6.6 percent, as the Arroyo administration returned to the global bond market three times last year.

Foreign currency-denominated government IOUs grew nearly 8.6 percent last year, with dollar-denominated debt papers comprising the bulk at P997.9 trillion.

The contingent debt of the national government “composed mainly of guarantees” rose to P614 billion, higher by P44 billion from end-November level of P570 billion.

The foreign contingent obligations increased by P47 billion due to pooled effect of P64 billion net availments, P1 billion adjustment due to conversion of ADB loans, P13 billion depreciation of the third currencies against the US dollar and P5 billion appreciation of peso against US dollar.

On the other hand, domestic contingent obligations decreased by P2 billion from end November 2009 level of P82 billion.