THE Philippine government is set to borrow over P2 trillion in 2024 to fund portions of the proposed P5.768 trillion national budget next year.
Data from the Department of Budget and Management’s (DBM) Budget of Expenditures and Sources of Financing for Fiscal Year 2024 showed the borrowing program next year stands at P2.46 trillion, higher than the P2.207 trillion borrowing program this year.
Broken down, the borrowing program next year comprises P606.85 billion in gross external borrowings and P1.853 trillion gross domestic borrowings.
The foreign borrowing will be sourced as follows:
* P295.845 billion program loans
* P36.005 billion project loans
* P275 billion bonds and other inflows
Meanwhile, domestic borrowings will be sourced from the following:
* P51.05 billion treasury bills
* P1.802 trillion fixed rate treasury bonds
At a Palace briefing, DBM Undersecretary Joselito Basilio said borrowing “would be 11% of the pie,” “consistent with the medium term fiscal framework.”
As of end-June this year, the Marcos administration has borrowed P1.327 trillion.
This brought the country’s outstanding sovereign debt to a new record high of P14.15 trillion as of end-June 2023, up 0.4% from P14.10 trillion as of end-May.
The month-on-month increase was attributed “primarily due to the net issuance of domestic securities,” according to the Treasury.
Of the total debt balance, 68.6% were sourced locally while the remaining 31.4% were from foreign sources.
Broken down, domestic debt totaled P9.70 trillion, up.2% from as of end-May. (GMA Integrated News)
