Gov’t borrowings tumbled 65% in Sept as fundraising ebbs
Gross borrowings of the Marcos administration significantly fell in September, as the state moved into the final stretch of its annual fundraising drive meant to plug its budget hole.
Gross financing declined by nearly 65 percent from a year earlier to P128.9 billion, according to the latest cash operations report of the Bureau of the Treasury (BTr).
This brought the nine-month borrowings to P2.4 trillion, marking a 4-percent increase. At this point, the Marcos administration is 92 percent done raising its target financing of P2.6 trillion for the year.
Data showed domestic borrowings contracted by nearly 17 percent to P120.5 billion in September. Most of that came from weekly offerings of Treasury bonds amounting to P111.8 billion, as well as net proceeds from the regular sale of short-dated Treasury bills to P8.7 billion.
Since January, the Marcos administration has borrowed P1.96 trillion from the domestic market, up by 9 percent and equivalent to 93 percent of the P2.1-trillion program for 2025.
Foreign financing
Meanwhile, external borrowings plummeted by 96 percent to P8.4 billion in September, driven by a project loan of the same amount that carried concessional rates and favorable repayment terms.
This sent the year-to-date foreign financing to P434.6 billion, down by almost 14 percent year-on-year and accounting for 89 percent of the P488.1 billion goal.
The government needs to continue borrowing money from lenders to plug a projected budget deficit of P1.6 trillion, equivalent to 5.5 percent of gross domestic product.
Fiscal planners say they will continue to favor onshore borrowing to limit exposure to foreign exchange risks. The Marcos administration has also made clear it is seeking an upgrade to an A-level credit rating, a distinction it hopes to achieve by keeping debt metrics in check while sustaining economic growth.
For the fourth quarter, the government will raise P437 billion in local financing, 36.7 percent smaller than the P690 billion it had planned to raise in the third, as its annual fundraising efforts wind down. The drive is expected to push the debt stock to P17.36 trillion by year’s end.
By the end of 2026, outstanding obligations are projected to reach P19.1 trillion, as the government targets to borrow a total of P2.68 trillion from local and foreign lenders.
