Government borrowings surge to P291 billion

In July, the Marcos administration's gross borrowings surged by more than 75 percent, reaching P291.38 billion. This significant increase was mainly due to a surge in domestic borrowing as the government aimed to address the budget gap. The government's local borrowings jumped by 77.9 percent in July, amounting to P271.32 billion, compared to P152.54 billion in the same month last year.

This increase was primarily driven by a sharp rise in Treasury bills (T-bills) sales and bond issuances. T-bills rose by an impressive 383.7 percent, reaching P133.2 billion, while T-bonds increased by 10.5 percent to P138.12 billion. External borrowings totaled P20.05 billion in July, comprising P18.64 billion in project loans and P1.41 billion in program loans.

Over a seven-month period, the government's total gross borrowing rose by 20.2 percent to P2.11 trillion, up from P1.76 trillion a year ago. Local borrowings climbed by 15.4 percent to P1.55 trillion at the end of July, while foreign borrowings surged by 35.8 percent to P564.86 billion. The latter included two global bond issuances in January and June, totaling $314.37 billion.

In June, the government raised $2.5 billion from a triple-tranche sale of dollar-denominated global bonds, which were well-received by investors. This marked the administration's second international debt market entry this year, following a similar issuance in January. National Treasurer Sharon Almanza indicated that the government plans to issue retail Treasury bonds within the year, pending more favorable market conditions.

For 2026, the Marcos administration aims to borrow P2.73 trillion, with P1.92 trillion sourced domestically and P815.51 billion from external lenders.