THE NATIONAL Government’s (NG) gross borrowings inched up in January amid a rise in domestic debt, the Bureau of the Treasury (BTr) said.
Data from the BTr showed that the total gross borrowings in the first month of 2025 rose by 4.92% to P213.14 billion from P203.15 billion a year prior.
Domestic debt accounted for the bulk or 71.41% of total gross borrowings for the month.
In January, gross domestic borrowings stood at P152.2 billion, up 7.56% from P141.51 billion in the same month in 2024.
This consisted of fixed-rate Treasury bonds amounting to P140 billion and Treasury bills worth P12.2 billion.
On the other hand, gross external debt slipped by 1.14% to P60.94 billion in January from P61.65 billion in the same month last year.
Broken down, program loans stood at P56.29 billion and project loans were at P4.65 billion.
“Primarily to finance the budget deficit, as some of the borrowings by the NG may also be frontloaded, just like the $3.29-billion global bond sale amid market volatility brought about by [Donald J.] Trump’s tariffs/protectionist policies,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.
In January, the BTr said the Philippines raised $3.29 billion from the sale of the US dollar and euro-denominated bonds.
For 2025, the government set the financing program at P2.545 trillion, where 80% will come from local lenders and 20% will be sourced from foreign sources.
Mr. Ricafort said future NG borrowings supported by fiscal reform measures could help to narrow the budget deficit, while rate cuts from the US Federal Reserve and the Bangko Sentral ng Pilipinas may ease interest payments. — Aubrey Rose A. Inosante
