GOVERNMENT borrowing fell sharply from a year earlier in July, due to a decline in Treasury bonds (T-bonds) issued that month, data from the Bureau of the Treasury (BTr) show.
The national government borrowed a total of P14.21 billion in July, down 52.39% from a year earlier.
Compared to June, borrowing declined 73.17% in July.
Gross borrowing from domestic sources more than halved to P13.03 billion in July. This represented 92% of total debt taken on that month.
Treasury bills (T-bills) meanwhile saw net redemptions of P1.97 billion, from P3 billion worth of net borrowing a year earlier.
Moreover, foreign borrowing for the month — accounting for about 8% of total loans — fell 51.31% year-on-year to P1.18 billion, following a decline in project loans.
In the first seven months, borrowing rose 55.67% year-on-year to P519.97 billion.
As of July, the government has hit 82.37% of its gross borrowing target this year of P631.29 billion.
The government borrows funds to pay maturing debt and help plug its fiscal deficit, which is pegged at 3% of gross domestic product (GDP), or P478.1 billion, until 2022 — as it plans to drastically raise spending, particularly on infrastructure.
The government reported as of July that it has an outstanding debt of P6.39 billion, 0.5% lower from June, but 6.7% higher year-on-year. — Elijah Joseph C. Tubayan
