The national government debt increased in June by P28 billion from the previous month, data from the Bureau of Treasury showed Thursday.

Total outstanding debt in June stood at P4.582 trillion. Of the amount, P1.986 trillion or 43.4 percent is owed to foreign creditors and P2.596 trillion or 56.6 percent to domestic creditors.

The treasury bureau attributed the increase in foreign debt of P16 billion from the previous month’s level on P9 billion depreciation of the peso against the US dollar, P9 billion appreciation of the third currencies against the US dollar and 1 billion adjustment resulting from the late receipt of notices of availments.

However, the increase was partially offset by the P3 billion net repayments.

The domestic debt increased by P12 billion or 0.5 percent from the recorded end May 2010 level arising from the net issuance of government securities made by government.

On the other hand, the contingent debt of the government, composed mainly of guarantees, moved down to P609 billion from end May 2010 level of P616 billion.

The decline of P7 billion is attributed to the combined effects of the P13 billion net repayments, P4 billion appreciation of third currencies against the US dollar and P2 billion depreciation of the peso against the US dollar.

In 2011, the country’s debt is expected to breach the P5 trillion mark as value of its whole economy is seen to reach P9.045 trillion.

Finance department data showed the government's debt stock will grow by 6 percent to P5.042 trillion in 2011 from P4.737 trillion this year, equivalent to 55.7 percent of the country's gross domestic product.

Of the total debt stock, domestic debt is expected to reach P2.9 trillion from P2.694 trillion, while foreign debt will reach P2.115 trillion from P2.042 trillion.

Since the post-Marcos era, the debt stock only hit the trillion mark during the Arroyo administration from only P469 billion accumulated during former President Corazon Aquino’s six-year term which was from 1986 to 1992.

Data from the Finance department showed that the government of former President Fidel Ramos posted a debt of P387 billion while the short-lived presidency of actor-turned-politician Joseph Estrada incurred a debt of P654 billion.

Both Aquino and Ramos served a one-time full six-year term as mandated in the Constitution. Estrada, on the other hand, incurred a debt of P654 billion with barely two and half years in power after being toppled by People Power II.