‘Gov’t Jan-July borrowings up 14%
By Michelle Remo
Philippine Daily Inquirer
First Posted 02:03:00 08/22/2008
Filed Under: Government Debt, Economic Indicators
MANILA, Philippines—Government borrowings grew 14 percent in the January-July period from the same months last year, as economic pump-priming efforts required increased spending for infrastructure and social services.
According to Department of Finance records, the government borrowed P331.79 billion in the seven months, up from P289.97 billion in the same period last year. About P285.62 billion was from domestic creditors and P46.16 billion from foreign lenders.
A big rise came in July, when the government sold P70 billion worth of Retail Treasury Bonds (RTBs), small-denomination securities intended for small investors. That month, the government borrowed a total of P89.0 billion, compared with P37.02 billion a year earlier.
Borrowings made through the sale of RTBs were not in the original fiscal program but the government decided to borrow more than previously planned to keep the economy afloat amid a global economic slowdown.
The government had aimed at posting a balanced budget this year, hoping to borrow only to cover maturing debts and to finance operations and projects with revenues. Accelerated increases in prices of fuel and food forced it to abandon that goal this year, and it is now allowing itself to a budget deficit of up to P75 billion this year. Edited by INQUIRER.net
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