The Marcos administration posted ₱339.6 billion in gross borrowings in February, nearly half of a year ago’s financing, but ₱126.5-billion higher than the gross debt in January.

According to the Bureau of the Treasury (BTr), the February figure was nearly 49-percent lower than the ₱663.4 billion recorded in the same period last year. But month-on-month, the government’s borrowings increased by more than 59 percent, from ₱213.1 billion in January.

February’s gross borrowings accounted for over 13 percent of the government's total planned borrowings of ₱2.55 trillion for the year. This was higher than the previous month’s gross borrowings, which accounted for over eight percent of the program.

Gross foreign debt stood at ₱198.8 billion, making up almost 59 percent of the total borrowings. This increased by ₱194.1 billion, or more than 42 times the ₱4.7-billion gross foreign borrowings in the same month last year.

It exceeded the government’s ceiling of a 20-percent share. This year, the government plans to acquire 20 percent of its financing from foreign sources, and 80 percent from domestic sources, thus an 80:20 borrowing mix.

To dissect, the government increased its project loans to ₱6.8 billion in February from the ₱4.7 billion borrowed a year earlier.

Notably, global bonds totaling ₱192 billion were settled during the month, a massive jump from zero in February of the previous year.

Domestically, the government borrowed ₱140.8 billion in February, which accounted for over 41 percent of total. This declined by ₱517.9 billion annually, or almost 79 percent of February 2024’s ₱658.7 billion.

Measured against the borrowing mix, the government fell significantly short of the 80-percent target share.

Broken down, the BTr raised ₱130 billion from fixed-rate treasury bonds (T-bonds), significantly higher than the ₱60 billion it borrowed in February 2024.

Meanwhile, the government reduced its borrowings from short-dated treasury bills (T-bills), which stood at ₱10.8 billion, from ₱13.8 billion a year ago.

Notably, the BTr awarded retail treasury bonds (RTBs) worth ₱584.9 billion in February last year. There was no sale of these bonds in February this year, thus the massive difference from last year’s data.

End-February decline

In the first two months of the year, gross borrowings reached ₱552.7 billion, a ₱313.9-billion, or more than 36-percent, drop from ₱866.6 billion in the same period last year.

End-February borrowings now account for almost 22 percent of the government’s total planned borrowings.

Notably, gross foreign debt hit ₱259.7 billion, surging by ₱193.3 billion or almost four times the end-February 2024 figure of ₱66.4 billion.

Meanwhile, the government decreased its gross financing from domestic sources to ₱293 billion, from ₱800.2 billion as of end-February 2024. This is equivalent to a ₱507.2-billion, or more than 63-percent, decline from last year’s figure.

It can be recalled that the Marcos administration’s gross borrowings surged to ₱2.56 trillion in 2024, up ₱370 billion, or nearly 17 percent, from ₱2.19 trillion in 2023, driven by a sharp rise in both domestic and foreign debt.

Last year’s total borrowings exceeded the administration’s borrowing plan by ₱100 billion. It was over four-percent higher than the programmed ₱2.46 trillion for the year.