Government borrowings widened by 22 percent in the first eight months from a year ago, after the Treasury actively tapped the domestic debt market to settle maturing obligations and finance the growing budget deficit.
Data showed total government’s borrowings reached P307.8 billion in January to August, up from P252.25 billion recorded in the same period in 2015. The government incurred a budget deficit of P138.4 billion in the eight-month period.
Financing from the foreign market fell 21.2 percent to P82.037 billion, while financing from the local market jumped 52.4 percent to P225.763 billion.
Data showed of the total external gross borrowings, P12.496 billion were coursed through project loans and P28.284 billion through program loans.
Total financing in August dropped 12.2 percent to P28.652 billion from P32.622 billion registered in the same month in 2015.
External gross borrowings in August declined 55.7 percent to P1.454 billion, while domestic gross borrowings fell to P27.198 billion.
The Finance Department earlier said it would maintain its bias for local borrowings to shield the government from external shocks brought about by foreign exchange fluctuations.
The government, based on the Budget Expenditure Source and Financing, intends to borrow P538.373 billion from the local market and P157.071 billion from external sources in 2016.
The national government will also borrow less next year to fund next year’s budget proposal of P3.35 trillion.
The budget proposal submitted by Budget Secretary Benjamin Diokno to the House of Representatives showed the government planned to borrow P631.3 billion in 2017.
The intended 2017 borrowing program would be 9.2 percent less than the P695.4-billion programmed borrowing this year.
Government’s gross borrowings are projected to increase to P674.5 billion in 2018 and P892.5 billion in 2019.