Gov’t gross borrowings up 28.2% in Nov.
MANILA, Philippines —Gross borrowings by the Marcos administration went up in November on the back of an increase in domestic liabilities to help fund the country’s post-pandemic needs, the Bureau of the Treasury reported.
Data showed gross financing last month amounted to P125.46 billion, up 28.2 percent compared with P97.87 billion recorded a year ago.
But on a month-on-month basis, gross borrowings fell 44.2 percent.
The November figure brought the 11-month gross financing to P2.1 trillion, relatively unchanged from last year.
That would add up to the state’s total debt pile, which swelled to P14.48 trillion as of end-October based on latest government data.
Local borrowings up
According to the Treasury, the uptick in gross borrowings last month was driven by higher domestic and external liabilities.
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Article continues after this advertisementIn November, gross domestic debt reached P121 billion, up by 59.8 percent. The amount included the P15-billion proceeds from the Philippine government’s first ever sale of “tokenized” bonds.
That sent the year-to-date local gross financing to P1.64 trillion, higher than last year’s P1.61 trillion.
Meanwhile, gross external debt sagged by 79.8 percent year-on-year in November to P4.44 billion, which brought the 11-month figure to P460.75 billion, down 6.7 percent year-on-year.
The government borrows money from lenders to bridge the gap between its budget and expenditures.
READ: PH budget deficit seen further narrowing in 2023, 2024
Based on latest projections by economic managers, it is only in 2027 that the budget deficit, as a share of the economy, is forecast to return to pre-pandemic level at 3.2 percent, from this year’s projected ratio of 6.1 percent.
The anticipated implementation of priority tax measures over the medium term—which includes a proposed value added tax (VAT) on digital service providers and excise tax on single-use plastic bags, among others—would push up revenues to P6.622 trillion in 2028 and help cut debt, economic officials said.
