First-half gov’t borrowing P505 billion

GOVERNMENT borrowing grew nearly 60% year on year after increased bond issues, pushing borrowing in the first half to over half a trillion pesos, according to the Treasury bureau.

Funds borrowed by the national government amounted to P52.96 billion in June, up 59.57% from a year earlier.

Month on month, the June total was up 59.45% from May.

Borrowing in the first half rose to P505.76 billion, up 66.27% from a year earlier.

This accounts for 69.51% of the upwardlyrevised P727.64 billion borrowing program for the year.

The increase in June borrowing was due to increased issues of Treasury bonds (T-bonds) and Treasury bills (T-bills) to the domestic market, as well as more project loans from foreign sources.

Funds from local lenders totaled P48.97 billion, up 56.15% year on year, while external loans amounted to P3.99 billion, more than double the P1.82 billion from a year earlier.

T-bills raised P14.94 billion while T-bonds generated P34.03 billion in June, up from P6.37 billion and P25 billion in June 2016, respectively.

Meanwhile project loans from foreign sources stood at P3.94 billion against the P1.77 billion total a year earlier, while program loans raised P51 million.

Loans from domestic sources accounted for 72.48% of the financing portfolio in the first half at P366.56 billion, while external creditors lent P139.21 billion.

The government borrows to pay maturing debt and help plug its fiscal deficit, which is pegged at 3% of gross domestic product (GDP) until 2022 — as it plans to drastically raise spending, particularly on infrastructure.

Next year, the country will borrow about P889.72 billion, 22.3% higher than the current borrowing plan.

Despite the increasing debt, the government said that the country’s economic expansion will continue to outpace it.

The government expects the debt burden to slow to about 35-37% of GDP from the current 40.76% and the 42.18% ratio last year. —