Gov't nears P2.6-T borrowing cap

A steady reliance on local lenders is driving the government's debt, with overall borrowings growing 4.1 percent to P2.4 trillion in the first nine months of the year, bringing it just P200 billion shy of the revised P2.6 trillion ceiling.

- DERCO ROSAL

The Bureau of the Treasury (BTr) data showed the nine-month total already accounts for 92.1 percent of the Marco administration's full-year borrowing plan, rising from P2.3 trillion recorded in the same period last year.

At end-September, gross domestic debt swelled to P1.96 trillion, 9.2 percent higher than last year's gross loans from local sources at P1.8 trillion. It accounted for 81.8 percent of total borrowings during the nine-month period, exceeding the government's target share of 80 percent.

This year, the government is targeting to secure 80 percent of its financing from domestic sources and 20 percent from foreign sources, resulting in an 80:20 borrowing mix.

Notably, the government issued a total of P425.6 billion in retail treasury bonds (RTBs) in August, compared to P584.9 billion a year ago. It can be recalled that there was zero issuance of such scale until August.