THE government posted some P88.469 billion in net borrowings in October. This was more than four times the P16.78 billion recorded in the same month last year, according to the Bureau of the Treasury (BTr).

The issuance of $1 billion or P47.084 billion in global bonds, a rare third offering within a year, pushed the government borrowing during the period higher.

Another factor was the P31.1-billion net issuance of treasury bills, with the BTr awarding notes more than what was redeemed.

In October, the government borrowed a total of P100.1 billion?including P61.42 billion from foreign sources and P38.66 billion from domestic lenders.

Total government borrowings in the same months last year amounted to only P32.21 billion?P1.73 billion from abroad and P30.48 billion from local lenders.

In the same month this year, the government paid a total of P11.58 billion in debts, including P2.72 billion in foreign loans and P8.86 billion in domestic debts. This was 25 percent less than the P15.43 billion settled in the same month last year?P2.15 billion from overseas and P13.28 billion from local lenders.

For the 10 months to October, the government registered net borrowings of P195.85 billion, or 85.6 percent higher than the P105.5 billion posted a year ago.

Last week, finance officials reported that the budget deficit had reached P266.1 billion, breaching the ceiling of P250 billion for the year.

Finance Secretary Margarito B. Teves said the deficit for the whole year might hit P280 billion to P300 billion as revenue agencies had been missing their targets and that the window for privatizing big-ticket state assets had become tighter with only five weeks remaining in the year.

From January to October, the government incurred P229.59 billion in new foreign loans or more than four times the P53.04 billion contracted last year.

This was mainly due to the issuance of global bonds, which reached P154.54 billion including $1.5 billion or P71.39 billion from the first outing in January and $750 million or P36.07 billion in July.

In the same period of last year, the government raised P20.28 billion in foreign currency-denominated bonds.

Also in the comparative 10 months, official development assistance tapped rose by 129 percent to P75.04 billion in combined loans for programs and projects from P32.75 billion a year ago.

The government borrowed from January to October P291.57 billion from domestic lenders, down by 21.3 percent from P370.57 billion a year ago.