THE NATIONAL Government (NG) will borrow less from the domestic market next year to make way for private sector lending, the Bureau of the Treasury said.

National Treasurer Rosalia V. de Leon on Tuesday said the government would get 77% of its borrowing program from domestic lenders in 2022.

“We are borrowing less and reducing domestic (borrowings) at 77% instead of 81% to make room for the private sector with renewed lending following the opening of the economy,” she said in a Viber message to reporters.

Going into 2022, Ms. De Leon said the market would be looking at signals from the US Federal Reserve on a possible early rate liftoff and tapering of bond purchases.

The market would also watch the December inflation and the results of the Monetary Board meeting on Thursday, she said.

“Plus of course any update on the Omicron variant and the efficacy of vaccines against it,” Ms. De Leon said.

The US Federal Reserve would probably quicken the tapering of its bond-buying program, Reuters reported on Monday.

Philippine inflation in November eased to a four-month low of 4.2%, but remained higher than the central bank’s 3.3%-4.1% forecast for the month.

The Bangko Sentral ng Pilipinas is widely expected to keep policy rates unchanged at its last policy-setting meeting on Thursday.

Gross borrowings by the National Government had reached P2.75 trillion as of end-October, preliminary data from the Treasury bureau showed.

Year to date, the government’s debt accounted for 91% of the P3-trillion borrowing plan for the entire year.

For the first 10 months of the year, gross domestic borrowings stood at P2.29 trillion, while gross external borrowings reached P518.71 billion.

The government borrows from local and foreign creditors to finance a budget deficit that has widened since last year after a coronavirus pandemic stalled the economy and pulled down tax collections.

This year’s budget deficit is expected to reach 9.3% of gross domestic product. — Jenina P. Ibañez