GOVERNMENT borrowing grew over 10% in May due to a rise in external project loans during the month, according to the Bureau of the Treasury data.
Funds borrowed by the national government amounted to P33.21 billion in May, up 10.56% from a year earlier.
Borrowing declined 83.92% from the P206.47 billion recorded in April.
Loans from domestic sources took up 84.4% of the financing portfolio in May at P28.03 billion, little changed from P27.85 billion a year earlier.
Some P24.72 billion was raised from treasury bonds, and P3.31 billion from Treasury bills.
Borrowing from external creditors on the other hand totaled P5.18 billion, more than doubling from P2.19 billion a year earlier. All external borrowing came in the form of project loans.
For the five months to May, borrowing hit P452.81 billion, up 67.09% from a year earlier.
This total accounts for 62.23% of the upwardly-revised P727.64 billion borrowing program for the year.
The government borrows to pay maturing debt and help plug its fiscal deficit, which is pegged at 3% of gross domestic product (GDP) — as it plans to drastically raise spending, particularly on infrastructure.
The government reported as of May that it has outstanding debt of P6.35 billion, up 7.8% from a year earlier.
Next year, the country will borrow about P889.72 billion, up 22.3% from the current-year borrowing plan.
Despite taking on more debt, the government said that the country’s economic expansion will continue to outpace levels of indebtedness.
The government expects the debt burden to decline to about 35-37% of GDP from the current 40.76% and the 42.18% in 2016. — Elijah Joseph C. Tubayan
