Government borrowing plan soars to P2.6 trillion

The Marcos administration plans to borrow more funds this year than initially planned, the Department of Finance (DOF) announced.

In a statement, Finance Secretary Ralph G. Recto said on Monday, April 29, that the national government plans to borrow P2.57 trillion in 2024.

The funds will be sourced from both local and foreign creditors to address the budget deficit for the year.

The DOF’s updated borrowing target exceeds the original P2.46 trillion set by the Development Budget Coordination Committee (DBCC).

The DOF indicated that the Bureau of the Treasury would maintain a 75:25 borrowing mix in favor of domestic sources.

Specifically, the government plans to borrow P1.927 trillion from the local market, while the remaining P624 billion will come from external sources.

The DBCC, an inter-agency body responsible for setting the government’s macroeconomic assumptions, recently increased the budget deficit ceiling from 5.1 percent to 5.6 percent.

This adjustment translates to a nominal value of P1.484 trillion, with expenditures expected to hit P5.754 trillion and revenues amounting to P4.267 trillion.

Additionally, the DBCC has revised its fiscal program for the years 2025 to 2028.

Budget Secretary Amenah F. Pangandaman said that the adjustment is crucial to provide the necessary financial flexibility to support the government’s projects and programs.

Under the Marcos administration’s revised plan, a fiscal deficit of 3.7 percent of the economy is projected by the conclusion of its term in 2028. — Chino S. Leyco