The Marcos administration’s borrowings surged in May due to the government’s maiden offshore bond sale this year, data from the Bureau of the Treasury showed.

According to the Treasury, gross financing rose by 77 percent to P259.33 billion in May from the P146.78 billion recorded in the same month of the previous year.

The substantial spike was mainly fueled by foreign borrowings, which leaped from a mere P14.99 billion in the previous year to P127.61 billion this year.

This surge in offshore financing was mainly attributed to raising P115.25 billion through the Marcos administration's first foreign commercial borrowing in 2024.

In addition to commercial borrowing, an additional P12.36 billion was secured in May through borrowings from the country’s development partners to support various government projects.

Meanwhile, domestic borrowings remained relatively stable in May, with the Treasury securing P131.72 billion, a marginal increase compared to P131.79 billion in the same period a year ago.

May's gross borrowings pushed the national government's total for the first five months to P1.422 trillion, a 16 percent increase from the P1.224 trillion recorded in the same period last year.

According to the Treasury report, foreign borrowings at end-May stood at P251.71 billion, a decrease of 27 percent from P243.87 billion reported a year ago.

However, domestic borrowing from January to May surged by 33 percent to P1.17 trillion, from P880.9 million in the corresponding period last year.

In 2024, the Marcos administration aims to secure more funds this year than initially anticipated, targeting a total borrowing of P2.57 trillion, up from the original goal of P2.46 trillion.

Despite this adjustment, the Treasury maintains a borrowing mix of 75:25 in favor of domestic sources.

Specifically, the government plans to borrow P1.927 trillion from the local market, while the remaining P624 billion will be sourced from external avenues.