The Bureau of the Treasury reported that the Marcos administration significantly increased its borrowing in February this year, primarily from the domestic market.

In the second month of 2024, the national government's gross borrowings totaled P419.97 billion, higher by 22 percent compared to P343.48 billion in the same month the previous year.

The surge in borrowing was largely driven by local financing, which jumped by 27 percent to P415.23 billion from P327.5 billion a year earlier, acording to the Treasury.

Most of the local borrowings were obtained through the issuance of retail treasury bonds, raising P341.41 billion in funds during the month.

Additionally, the government held sales of P60 billion in long-term IOUs and P13.82 billion in short-term debt instruments during that month.

In contrast, foreign borrowings decreased by 70 percent from P15.98 billion in February 2023 to just P4.74 billion.

The overseas financing consisted solely of project loans, which are borrowings sourced from the Philippines' development partners.

In the first two months of the year, the national government's gross borrowings reached P623.13 billion, a 12 percent decrease compared to P710.48 billion in the previous year.

According to the Treasury report, the deceleration was primarily due to the decline in foreign borrowings, which amounted to only P66.39 billion compared to P203.54 billion.

However, local borrowing at end-February increased by 10 percent to P556.74 billion from P506.94 billion.

To bridge the budget deficit, which is limited to P1.48 trillion or 5.6 percent of the gross domestic product, the Marcos administration is borrowing from both domestic and foreign creditors.

The total borrowing requirement for the Philippines this year stood at P2.46 trillion.