More domestic borrowings eyed to fund wider deficit

THE GOVERNMENT is still planning to source additional borrowings from the domestic market to fund the ballooning budget deficit.

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“We're still finalizing the details of our borrowing program, but we're still targeting the 80-20 [local to foreign] funding split,” National Treasurer Sharon P. Almanza said in a Viber message.

The government is looking to hike its borrowing program to P2.6 trillion this year from P2.55 trillion previously, to fund the ballooning budget deficit.

The Development Budget Coordination Committee (DBCC) last week raised the budget deficit ceiling for 2025 to P1.561 trillion or 5.5% of gross domestic product (GDP) from 5.3% previously.

The DBCC had lowered this year's revenue collection target to P4.52 trillion from P4.64 trillion previously. It trimmed the expenditure program for this year to P6.08 trillion from P6.18 trillion previously.

Asked where the government will source the additional borrowing requirements for this year, Finance Secretary Ralph G. Recto said in a text message: “Domestically.”

Gross borrowings by the National Government fell by 6.67% to P1.33 trillion in the first five months of the year as both domestic and external borrowings declined.