Gross borrowings hit P508.5B in Aug.

THE NATIONAL Government’s (NG) gross borrowings nearly tripled in August amid sharp rise in domestic and foreign borrowings, the Bureau of the Treasury (BTr) said.

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The latest data from the Treasury showed that total gross borrowings jumped by 192% to P508.53 billion in August from P174.03 billion in the same month a year ago.

Month on month, gross borrowings surged by 206% from P166.11 billion in July.

Domestic borrowings, which made up 97.97% of the total, rose by 198% to P498.21 billion in August from P167.05 billion in the same month last year.

This was composed of P425.61 billion in retail Treasury bonds (RTB), P60 billion in fixed-rate Treasury bonds (T-bonds), and P12.6 billion in Treasury bills (T-bills).

External borrowings, which mainly consisted of project loans, climbed by 47.57% to P10.31 billion in August from P6.99 billion in the previous year.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said elevated gross borrowings in August were likely driven by the latest RTB issuance as the government needed additional funds to plug the budget deficit.

The government raised P507.16 billion from the issuance of RTBs in August, exceeding the P30-billion target.