Gov’t bor­row­ing de­clines sharply in Septem­ber

Business World - - THE ECONOMY - Eli­jah Joseph C. Tubayan

GOV­ERN­MENT bor­row­ing in Septem­ber fell 58.48% from a year ear­lier to P42.5 bil­lion, due to a strong year-ear­lier base and in the ab­sence of Re­tail Trea­sury Bond (RTB) is­sues, the Trea­sury bu­reau said in a state­ment.

In Au­gust, it bor­rowed P61.31 bil­lion.

Do­mes­tic bor­row­ing in Septem­ber fell to P37 bil­lion from P100.04 bil­lion a year ear­lier, as no RTBs were is­sued. The year-ear­lier debt is­sues con­sisted of re­tail gov­ern­ment se­cu­ri­ties.

In Septem­ber, Trea­sury bills ac­counted for P7 bil­lion and Trea­sury bonds P30 bil­lion.

Fi­nanc­ing from ex­ter­nal sources on the other hand grew to P5.5 bil­lion, against P2.31 bil­lion a year ear­lier.

Pro­gram loans ac­counted for P4.43 bil­lion of for­eign bor­row­ing, while project loans to­taled P1.07 bil­lion.

A year ear­lier pro­gram loans to­taled P2.68 bil­lion and project loans P909 mil­lion.

In the nine months to Septem­ber, bor­row­ing rose 34.14% to P623.78 bil­lion, or about 85.71% of the up­wardly-ad­justed bud­get for gross bor­row­ing this year.

The gov­ern­ment bor­rows funds to fi­nance its fis­cal deficit, which the au­thor­i­ties seek to main­tain at about 3% of gross do­mes­tic prod­uct, or P478.1 bil­lion, un­til 2022. —

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