Gov’t borrowings up 39.5% in Jan-may

Total government borrowings increased by 39.49 percent in the first five months of the year compared to a year ago as local borrowings increased, latest data from the Department of Finance (DOF) showed.

Total borrowings from foreign and local debt markets amounted to P377.848 billion from January to May, up from P270.880 billion a year ago.

This is as the decline in foreign borrowings was offset by an increase in domestic borrowings, DOF data showed.

In the first five months of the year, the government borrowed P282.605 billion from the domestic market, a sharp 101.74-percent increase from the P140.086 billion a year ago.

Government’s foreign borrowings, on the other hand, declined to P95.243 billion from January to May as part of the Aquino administration’s effort to reduce its external debt.

In the comparable period last year, the government borrowed P130.794 billion or a decrease of 27.18 percent.

In May alone, total government borrowings dropped 43.41 percent to P30.259 billion from P53.47 billion a year ago.

Gross external borrowings during the month, however, rose to P11.529 billion from P2.489 billion a year ago while gross domestic borrowings dropped to P18.73 billion from P50.981 billion recorded in the same period last year.

The government borrows from the local and foreign markets to plug its budget deficit.

It hopes to contain the budget gap at roughly P280 billion this year or two percent of gross domestic product (GDP) from the actual P197.8 billion recorded last year.

The government recorded a budget deficit of P19.901 billion in May, bringing the January to May fiscal deficit to P22.786 billion.

Revenue collections in the first five months of the year reached P645.645 billion, higher than the P581.501 billion generated

a year ago while expenditures amounted to P668.431 billion, also higher than the P591.041 billion a year ago, latest data from the Finance department showed.

In May alone, revenues rose to P131.403 billion from P120.088 billion a year ago while expenditures also increased to P151.304 billion from P129.689 billion a year ago.