THE National Government’s (NG) gross borrowing grew 337.28% year on year to P390.06 billion in April as domestic debt surged, the Bureau of the Treasury (BTr) reported.
Nearly all of April’s gross borrowing — 98.63% — was accounted for by domestic sources.
Gross domestic debt totaled P384.71 billion in April, up 367.11% from a year earlier.
Domestic borrowing consisted of P300 billion in fixed-rate Treasury notes, P67 billion in fixed-rate Treasury-bonds (T-bonds) and P17.71 billion in Treasury bills (T-bills).
Gross external debt in April fell 21.81% year on year to P5.35 billion in April.
External borrowings during the month consisted entirely of P6.84 billion in new project loans.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the uptick in borrowing is “a timing issue more than anything else.”
“The timing of matured government debt to be repaid” and the “hedging of some of the government borrowings such as the $3.29-billion global bond issue in the latter part of January 2025” explains the surge in borrowing, he said via Viber.
The government is nearly done with its commercial borrowing program of $3.5 billion, he said.
Mr. Ricafort also cited the P300-billion 10-year Treasury note in late April, which was offset by about P140 billion in maturing Treasury bonds that month.
“The fourth largest budget surplus on record on a monthly basis helped somewhat in reducing NG borrowings/debt,” he said.
Separately, the BTr said the NG posted a P67.3-billion surplus in April with tax revenue coming in that month accompanied by a decline in government spending.
Meanwhile, in the four months to April, NG gross borrowing totaled P1.14 trillion, down 2.39% year on year.
Domestic debt accounted for 73.60% of the total for the period.
This consisted of P469.40 billion in retail T-bonds, P300 billion in fixed rate Treasury notes and P66.11 billion in T-bills.
External borrowing in the first four months rose 141.49% to P299.69 billion year on year.
This was composed of P191.97 billion in global bonds, P85.20 billion in program loans, and P22.53 billion in new project loans.
Mr. Ricafort noted that the government was “opportunistic in borrowing, more local in the total borrowing mix to better manage forex risk that foreign borrowing entails.”
He said the government’s maturing Treasury bonds are expected to be significant in August and September.
The government set its gross borrowing program at P2.55 trillion, targeting 80% in domestic borrowing and 20% foreign, according to the 2025 Budget of Expenditures and Sources of Financing. — Aubrey Rose A. Inosante
