Government borrowings shrink to P108 billion

In May

MANILA, Philippines — The national government’s total gross borrowings declined in May as domestic debt issuance shrank despite external financing surging more than fourfold.

Data from the Bureau of the Treasury (BTr) showed that total gross borrowings fell by 43.8 percent to P108.03 billion in May from P192.31 billion in the same month last year.

Month-on-month, gross borrowings also dipped by 17 percent from P130.19 billion in April.

Domestic gross borrowings, which make up 74 percent of the total, plunged by 56.8 percent to P80.29 billion in May from P186.06 billion a year earlier, driving the overall contraction.

Of the total domestic debt raised during this month, P88.72 billion came from fixed rate Treasury bonds, lower than the P159.76 billion recorded in May 2025.

Meanwhile, the government borrowed P27.74 billion from external sources for the month, more than four times the P6.25 billion in offshore financing it raised in the same month a year ago.

This consisted of program loans amounting to P14.98 billion and P12.76 billion in project loans.

Overall, total gross borrowings slipped by 6.5 percent to P1.24 trillion in the January to May period from P1.33 trillion in the same period of 2025.

Domestic gross borrowings stood at P933.67 billion, down by 8.6 percent from P1.02 trillion in the January to May 2025.

Meanwhile, external financing raised as of end-May reached P308.21 billion, up by 0.7 percent from P305.94 billion a year ago, driven by a $2.75-billion global bond issuance in January.

The amount also accounted for 46 percent of the government’s P2.68-trillion borrowing program for 2026, which is needed to plug the revised budget deficit ceiling of P1.66 trillion or 5.4 percent of gross domestic product.