Government borrowing drops in August – Manila Bulletin
The Duterte administration drastically cut new funding last August, taking only about a fifth of the amount borrowed a year earlier, according to data from the Treasury Office.
Gross borrowing only reached 117.74 billion pesos in August, 81% less or 495 billion pesos compared to 612.91 billion pesos in the same period in 2020. The government sold for 516 billion , 34 billion pesos in retail treasury bonds in August of last year.
The bulk of the additional borrowing came from the domestic market to the tune of 100.97 billion pesos, while the remaining 16.8 billion pesos was taken abroad.
Of the total external borrowing, project loans amounted to 12.17 billion pesos while program loans amounted to 4.6 billion pesos.
In August, the government’s net funding, which is borrowings less repayments, reached 66.59 billion pesos, 88 percent below the 582.72 billion pesos in the same month last year.
In the first eight months of the year, the national government recorded a 3.3 percent drop in gross funding to 2,388 trillion pesos from 2,470 billion pesos the previous year.
Of the total, about 80.8 percent was raised through domestic sources and 19.2 percent from external lenders.
Local borrowing reached 1,929 billion pesos at the end of August, down 1.6% from 1,960 billion pesos in the same period last year.
On the other hand, offshore funding amounted to P458.51 billion, about 10 percent lower from P509.7 billion a year ago.
In 2021, the Duterte administration plans to borrow 3 trillion PPPs to fund more than half of the government’s spending plan and close the growing budget deficit amid the protracted pandemic.
In August of this year, the outstanding debt of the national government stood at 11.642 billion pesos.
Based on estimates from the Ministry of Finance, the national government debt stock will hit a record 13.41 trillion pesos by the end of 2022.
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