THE NATIONAL Government’s (NG) gross borrowing rose 78.16% year-on-year in June, with both foreign and domestic debt expanding, the Bureau of the Treasury (BTr) said.
The BTr reported gross borrowing of P263.99 billion in June, which was up 37.28% against the May total.
Gross external debt grew 514.09% to P96.41 billion in June, which included P86.11 billion in program loans and P10.31 billion in project loans.
Meanwhile, gross domestic borrowing rose 26.50% year-on-year to P167.58 billion, including P127.68 billion in fixed-rate Treasury bonds and P39.90 billion in Treasury bills.
Domestic debt accounted for 63.48% of all gross borrowing.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the June borrowing total likely reflected the wider budget deficit that pushed the government to borrow more.
The budget deficit was P241.6 billion in June, according to the Bureau of the Treasury, bringing the first-half total of P613.9-billion.
“This could also be a function of maturing government debt in the coming months, with a large Treasury bond maturity of about P800 billion from August-September 2025, also in view of the upcoming RTB offering/issuance worth about P200 billion as early as 3Q 2025/August 2025,” Mr. Ricafort said via Viber.
NG gross borrowing rose 1.33% to P1.59 trillion in the first six months, driven by foreign loans.
Gross external borrowing rose 50.46% to P402.35 billion during the period, with P191.97 billion in global bonds, P171.31 billion in program loans and P39.08 billion in new project loans.
Domestic debt declined 8.75% to P1.19 trillion at the end of June.
Domestic gross borrowing for the period accounted for 74.72% of total borrowing in the six months.
This consisted of P756.84 billion in fixed-rate Treasury bonds, P300 billion in fixed-rate Treasury notes and P132.31 billion in Treasury bills.
“The borrowing program of the NG exceeded (projections) halfway through June, which may be a sign that they will push for higher government spending in the latter half of the year,” Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said via Viber.
Finance Secretary Ralph G. Recto has said that the borrowing plan was adjusted to P2.6 trillion from P2.55 trillion to fund the budget deficit. The government is seeking to retain the 80-20 funding split in favor of domestic sources.
At the end of April, government expenditure hit P1.90 trillion, up 11.6% year-on-year.
“This may be as pessimistic trade conditions and weak investor sentiment may continue to drag down GDP (gross domestic product) growth, the government may step in to try and boost growth through faster spending,” Mr. Erece said.
The economy grew by a weaker-than-expected 5.4% in the first three months of 2025 as negative tariff sentiment dampened economic activity.
Economic managers have lowered their growth target range to 5.5%-6.5% from 6-8% previously.
The government caps its deficit at P1.56 trillion, equivalent to 5.5% of GDP.
THE NATIONAL Government’s (NG) gross borrowing rose 78.16% year-on-year in June, with both foreign and domestic debt expanding, the Bureau of the Treasury (BTr) said.
The BTr reported gross borrowing of P263.99 billion in June, which was up 37.28% against the May total.
Gross external debt grew 514.09% to P96.41 billion in June, which included P86.11 billion in program loans and P10.31 billion in project loans.
Meanwhile, gross domestic borrowing rose 26.50% year-on-year to P167.58 billion, including P127.68 billion in fixed-rate Treasury bonds and P39.90 billion in Treasury bills.
Domestic debt accounted for 63.48% of all gross borrowing.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the June borrowing total likely reflected the wider budget deficit that pushed the government to borrow more.
The budget deficit was P241.6 billion in June, according to the Bureau of the Treasury, bringing the first-half total of P613.9-billion.
“This could also be a function of maturing government debt in the coming months, with a large Treasury bond maturity of about P800 billion from August-September 2025, also in view of the upcoming RTB offering/issuance worth about P200 billion as early as 3Q 2025/August 2025,” Mr. Ricafort said via Viber.
NG gross borrowing rose 1.33% to P1.59 trillion in the first six months, driven by foreign loans.
Gross external borrowing rose 50.46% to P402.35 billion during the period, with P191.97 billion in global bonds, P171.31 billion in program loans and P39.08 billion in new project loans.
Domestic debt declined 8.75% to P1.19 trillion at the end of June.
Domestic gross borrowing for the period accounted for 74.72% of total borrowing in the six months.
This consisted of P756.84 billion in fixed-rate Treasury bonds, P300 billion in fixed-rate Treasury notes and P132.31 billion in Treasury bills.
“The borrowing program of the NG exceeded (projections) halfway through June, which may be a sign that they will push for higher government spending in the latter half of the year,” Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said via Viber.
Finance Secretary Ralph G. Recto has said that the borrowing plan was adjusted to P2.6 trillion from P2.55 trillion to fund the budget deficit. The government is seeking to retain the 80-20 funding split in favor of domestic sources.
At the end of April, government expenditure hit P1.90 trillion, up 11.6% year-on-year.
“This may be as pessimistic trade conditions and weak investor sentiment may continue to drag down GDP (gross domestic product) growth, the government may step in to try and boost growth through faster spending,” Mr. Erece said.
The economy grew by a weaker-than-expected 5.4% in the first three months of 2025 as negative tariff sentiment dampened economic activity.
Economic managers have lowered their growth target range to 5.5%-6.5% from 6-8% previously.
The government caps its deficit at P1.56 trillion, equivalent to 5.5% of GDP. — Aubrey Rose A. Inosante
