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Gov’t jacks up borrowing in July

The national government has jacked up its borrowing in July to P134 billion to bridge the widening budget deficit amid weak revenue collections, data from the Bureau of the Treasury showed.

Data revealed that the Duterte administration’s gross borrowings amounted to P134.53 billion in July this year, a reversal of the government’s P1.09-billion payment made in the same month in 2019. The July borrowing brought the national government’s first seven-month debt tally to a record P1.856 trillion.

Of the total July borrowing, foreign financing rose to P67.69 from only P3.21 billion last year. Of that amount, P63.73 billion were program loans and P3.96 billion were project loans.

Domestically, the government also borrowed P66.84 billion, a reversal of the P4.3 billion payment a year ago. More than half of local financing were raised through the sale of Treasury bills at P36.86 billion, while the remaining balance of P30 billion were Treasury bonds.

For 2020, the national government plans to borrow P3 trillion from domestic and foreign creditors to finance the Duterte administration’s fiscal deficit ceiling of P1.815 trillion.

Amid increased borrowing program, the national government’s outstanding debt increased by P110.1 billion last month, bringing the total obligations of all Filipinos to P9.164 trillion as of July this year.

The debt level at end-July rose from P9.054 trillion in the previous month and up by 17 percent compared with P7.804 trillion in the same period last year.

According to the Treasury, the government debt has already added P1.432 trillion since the start of the year, equivalent to 18.5 percent increase.

 Of the total outstanding debt stock, 68.3 percent are held by locally based financial institutions, while the remaining 31.7 percent were sourced from foreign creditors.

As of July, local debt amounted to P6.256 trillion, higher by 19 percent compared with P5.25 trillion last year.

 On the other hand, foreign debt stock rose by 14 percent to P2.907 trillion in July from P2.553 trillion in the same month in 2019.

In 2020, the Duterte administration expects the outstanding debt to reach more than P10 trillion.

Source: Manila Bulletin (

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