Government borrowings hit P585 billion

MANILA, Philippines - Total government borrowings rose to P584.67 billion in the first eight months of the year, more than double the P269.15 billion recorded in the same period last year, latest data from the Bureau of the Treasury (BTr) showed.

Data also showed that borrowings increased during the eight-month period because of the P68.5 billion the government raised through the sale of global bonds and the P51.74 billion it raised from the issuance of Samurai or yen-denominated bonds.

Of the P584.67 billion, the government borrowed P158.107 billion from foreign creditors and P426.557 billion from local lenders.

In the same period last year, the government borrowed P142 billion from external sources and P127.15 billion from domestic lenders for a total of P269.15 billion, data also showed.

Of the P158.107 billion it borrowed from foreign sources from January to August this year, project loans from various multilateral agencies accounted for P18.010 billion while program loans amounted to P19.843 billion.

In terms of domestic debt, the government issued P316.605 billion worth of Treasury bonds (T-bonds) and P119.803 billion worth of retail treasury bonds (RTBs). It also reported a net redemption in Treasury bills (T-bills), amounting to P9.851 billion during the eight-month period.

Government borrowings are expected to shoot-up by end-September following the sale of $1 billion worth of peso-denominated global bonds early this month.

The government borrows from local and foreign sources to plug a widening budget gap that is projected to hit P325 billion this year.

On Monday, Finance Secretary Cesar Purisima reported a budget surplus of P1.3 billion in August, the first surplus in four months, as spending fell and revenue rose.

As of end-August, the budget deficit stood at P228.1 billion, wider than the P210 billion deficit incurred in the same period last year.

Government officials have said that the budget gap could narrow to P290 billion next year from the projected P325 billion deficit this year if the economy grows by at least seven percent in 2011 from the target of five percent.