The national government’s borrowings in September declined by nearly 65 percent compared to the same period last year, with data from the Bureau of the Treasury showing a surge in debt servicing that tempered fresh financing.
Based on the national government’s financing from the Treasury, the country’s gross borrowing declined to P128.91 billion this year from P367.18 billion last year, representing a reduction of P238.27 billion.
Of the amount, gross domestic borrowings totaled P120.55 billion, nearly 17 percent lower than the P145.2 billion recorded in September last year.
Similarly, gross external debt dropped sharply to P8.36 billion, a steep decline from the P221.98 billion recorded a year earlier, which reflects a reduced reliance on foreign borrowing for financing needs.
The government’s gross borrowings in September were largely counterbalanced by substantial debt repayments, as the administration disbursed a total of P246.16 billion to settle its outstanding amortization on domestic and external obligations for the month.
Amortization spending refers to the allocation of funds for repaying the principal amount of government loans, effectively reducing the overall debt burden and reflecting efforts to manage fiscal responsibility.
Amortization for domestic borrowings reached P237.9 billion, significantly higher than the P87 million paid out in the same month last year. Furthermore, amortization for external borrowings totaled P8.26 billion, down from P19.67 billion in September 2024.
For the nine-month period, domestic gross borrowings posted a 9.5 percent increase to P1.96 trillion from P1.79 trillion in the same period last year. Meanwhile, external gross borrowings declined by nearly 14 percent to P434.6 billion this year from P504.45 billion in the same period last year.
The country’s budget deficit narrowed to P248.1 billion in September, driven by a sharp decline in government expenditures, according to the Treasury.
Data showed that the Marcos administration recorded a budget shortfall that is 9.2 percent lower than the P273.3 billion deficit posted in the same month last year.