PH new borrowings cut by 78%

Published November 28, 2021, 8:00 PM

by Chino S. Leyco

PH new borrowings cut by 78%

The national government cut new borrowings in October on the back of improving revenue collections.

Data from the Bureau of the Treasury showed that the Duterte administration’s gross borrowings last month dropped 78 percent to P145.78 billion from P663.21 billion in October last year.

According to the Treasury, the decline was mainly driven by lower local borrowings, which accounted for the bulk of the amount of additional financing secured by the government.

In October, gross domestic borrowings hit P133.73 billion, down 79 percent year-on-year from P639.04 billion.

Foreign borrowings, on the other hand, amounted to P12.05 billion in October, down by 50 percent compared with P24.17 billion in the same month in 2020.

The additional borrowings last month caused the 10-month total to reach P2.748 trillion.

However, the end October gross financing has gone down by six percent from P2.923 trillion in the same period last year.

The 10-month figure is equivalent to 89.5 percent of the P3.07 trillion programmed borrowings for 2021.

Of the total borrowings made, domestic borrowings amounted to P2.23 trillion, while foreign loans stood at P518.71 billion.

Last Nov. 25, Finance Secretary Carlos G. Dominguez III said the national government registered a rebound of revenue collections, which puts less pressure on its borrowing requirement.

Earlier, the treasury reported that the government’s revenue haul jumped 11 percent to P253.1 billion in October from P228.2 billion in a year earlier.

From January to October, the government’s revenues increased five percent from P2.371 trillion to P2.490 trillion.

Starting in 2022, Dominguez estimated that revenues are projected to exceed the growth in expenditures, which will translate into a narrowing budget deficit of 7.5 percent of gross domestic product from 9.3 percent in 2021.