Govt gross borrowings, debt payments up
The national government borrowed more from external and domestic creditors in January, but its debt servicing also surged during the month.
Data released by the Bureau of the Treasury showed over the weekend that the actual P710.31-gross borrowings in the first month of 2021 soared by 185.49 percent from P248.79 billion a year ago.
During the month, local financing of P680.761 billion accelerated by 411.17 percent from P680.761 million in January 2020.
Domestic borrowings were generated through the issuance of P50.76-billion and P90-billion worth of Treasury bills and fixed-rate bonds, respectively. The government also raised P540 billion from the short-term financing from the Bangko Sentral ng Pilipinas.
Foreign borrowings, meantime, picked up by 74.43 percent to P29.55 billion from P115.62 billion a year earlier. Total external financing in January was raised through P10.47-billion worth of project loans and P19.08-billion generated via program loans.
The national government has set a P3.035-trillion gross borrowing program this year, based on the Department of Budget and Management’s Budget of Expenditures and Sources of Financing (BESF) for fiscal year 2021. This compares to the P2.74-trillion gross financing in 2020.
On the other hand, the national government’s debt payments during the month settled at P219.79 billion, up 50.49 percent from the P146.05 billion posted a year ago.
Amortization expenses, which accounted for 78.60 percent of the total, ballooned by 104.12 percent to P172.77 billion from P84.63 billion in January 2020.
Local amortization expenses picked up by 10.86 percent to P49.89 billion in January this year from P45 billion, while foreign ones grew by 210 percent to P122.88 billion from P39.63 billion.
Interest payments, meanwhile, rose by 23.43 percent to P47.02 billion from P61.41 billion in January 2021.
Domestic interest payments declined by 15.28 percent to P29.37 billion in January this year from P34.67 billion, while the external ones eased by 34 percent to P17.64 billion from P26.73 billion.
Based on the BESF, the national government is programmed to service P1.79 trillion debt this year.
Last year, it paid P962.46 billion.