THE national government borrowed P1.933 trillion as of the end of August 2024 to finance its budget deficit.
Data from the Bureau of the Treasury (BTr) showed gross borrowings from January to August 2024 represent a 17.36-percent increase from the P1.647 trillion raised during the same period in 2023.
Debt incurred from domestic sources accounted for 85.91 percent of the total gross borrowings amounting to P1.661 trillion, which increased by 32.58 percent year-on-year from P1.253 trillion.
Gross domestic borrowings included P161.703 billion from net Treasury bills (T-bills), P584.861 billion from Retail Treasury bonds (RTBs) last February 2024, and P904.207 in fixed-rate Treasury bonds (T-bonds).
The government has yet to secure retail onshore T-bonds and tokenized bonds as part of its domestic borrowing plan this year.
Foreign sources
Meanwhile, a total of P282.464 billion was obtained from foreign financers
between January and August 2024, making up 14.61 percent of the total gross borrowings during the period.
External borrowings dropped by 28.41 percent year-on-year, decreasing to P282.464 billion from P394.562 billion.
The state scouted for funds through project loans amounting to P66.719 billion and program loans worth P100.498 billion.
Additionally, it issued global bonds, amassing P115.247 billion from US dollar bonds in May 2024.
August 2024 borrowings
In August 2024, gross borrowings rose by 40.29 percent to P174.034 billion from P124.056 billion during the same month a year ago.
Broken down, domestic and external borrowings amounted to P167.045 billion and P6.989 billion, respectively.
About P6.989 billion was sourced through project loans from external sources, while P27.045 billion and P140 billion were raised from domestic sources through T-bills and T-bonds issuances, respectively.
The government borrows to cover the gap when its expenses exceed the revenues it collected through taxes. This allows the state to fund services, such as healthcare, education, infrastructure and other social programs.
For the year, a total of P2.570 trillion is set to be borrowed, following a mix of 75:25, of which P1.923 trillion will be raised domestically while P646.084 billion will come from foreign sources.
As of the end of July 2024, the outstanding debt of the government reached P15.690 trillion and is projected to balloon to P16.056 trillion by the end of the year. ###
