The government posted P3.68 billion in net borrowings in the first five months of the year.
This is only about 3 percent of the P124.1 billion recorded a year ago, according to the Bureau of the Treasury (BTr).
The considerable easing of borrowings was observed amid continuing efforts by Malacañang to consolidate its finances and manage its debts well, particularly by lengthening the average maturity of its obligations.
In the first five months of the year, the government incurred P270.88 billion in new borrowings while a total of P267.2 billion was paid.
BTr data showed that the biggest contributors to total debts during the five-month period were the issuance of global bonds worth P119.683 billion and local bonds totaling P178.09 billion.
The government floated P54.77 billion in global bonds in January and P64.91 billion in March.
About half of the treasury bonds issued as of May represented 10-year debt paper. The BTr also issued P104.48 billion worth of T-bills or debt paper that mature in a year or less.
Also, overseas development assistance reached P11.11 billion, including P9.8 billion for projects and P1.3 billion for programs.
The amount is about two-thirds less than the P30.18 billion reported in the same period last year, which covered P10.33 for program loans and P19.84 billion for program loans.
As of May, the government settled a total of P267.2 billion, including P78.95 billion in foreign loans and P188.25 billion in domestic debts.
Total payment for the period was 5.7 percent more than the P252. 9 billion paid in the same period last year, which covered P89.33 billion in overseas obligations and P163.56 billion in local loans.
For May alone, the government reported net borrowings of P34.41 billion, which was 17.7 percent less than the P41.79 billion posted last year.
In the same month, the government recorded a net payment of P3.18 billion for foreign loans, but it incurred a net borrowing of P50.98 billion for domestic debt.
Total debt payment for the month reached P19.06 billion, which was 54.5 percent higher than the P12.34 billion paid in the same period last year.