Government’s net borrowings in H1 up 30% to P1.33T

The Philippine national government’s net borrowings in the first semester of 2023 reached P1.33 trillion, surging by 30 percent from P1.02 trillion in the same period last year as fresh Treasury bonds issued helped send the debt stock to a new high.

Data from the Bureau of the Treasury showed the government’s debt stock increase by P51.3 billion in June to reach yet another peak of P14.15 trillion in total.

During the first semester, gross foreign borrowings rang up P336.4 billion or 11.3 percent higher than P329.3 billion in the same period last year.

At the same time, the government paid P64 billion of its foreign obligations. This put the net foreign borrowing for the period at P302.4 billion, 7.4-percent higher than the P281.6 billion recorded previously.

Gross domestic borrowings totaled P1.06 trillion, 42.5-percent more than the P741.3 billion borrowed in the first half last year.

The government shelled out P32.3 billion in net amortizations and brought the net domestic borrowing for the period to P1.02 trillion, which was 38.4 percent higher than the P740.2 billion chalked up last year.

In June alone, the national government’s financing position was pegged at P159 billion, jumping 14.6 percent from P138.6 billion.

For that month, the government’s net borrowings from foreign lenders hit P15 billion, shrinking by 64.7 percent from P42.6 billion.

Net borrowings from local lenders reached P143.9 billion, an increase of 50 percent from P96.1 billion previously.

In a related development, First Metro and UA&P said in their latest monthly report that national government borrowings “won’t count much” in the second half of 2023.

They attributed this outlook to an expectation that the Philippine government will fall short of its 2023 budget deficit of P1.5 trillion.

“Besides, it (national government) has increased its cash position by P892 billion by end-May and its needs for [the second semester] would rise only at a normal pace,” they added.

The budget deficit narrowed by 18.2 percent to P551.7 billion in the first semester from P674.2 billion in the same period last year amid decreased spending.

During the period, the amount spent beyond revenues was 28.5-percent less than the planned P771.5-billion deficit per the Marcos administration’s plans to spur the domestic economy.

This happened as finance and budget officials continued to urge national agencies to use their budgets more efficiently and avoid underspending. INQ