By Aubrey Rose A. innocente, reporter
of national government (ng) increase in gross lending numbersWember amid sharp rise inMastic and foreign borrowing, Treasury Bureau (BTR) said.
The latest treasury figures showed that the total gross Borrowings increased by 74.55% to P113.53 billion from P65.05 billion A year ago this month.
Month-on-month, gross borrowings rose 29.3% from P87.81 billion in October.
Household borrowing increased 59.57% to P78 billion in November from P48.88 billion in the same month last year. This was the bulk of total gross borrowing in November, or 68.7%.
Domestic borrowing was mainly composed of P70 billion in fixed rate treasury bonds (T-bonds) and P8 billion in treasury bills (T-bills).
On the other hand, external borrowings, consisting mainly of project loans, increased by 119.81% to P35.53 billion in November from P16.17 billion last year.
Rizal Commercial Banking Corporation Chief Economist Michael L. Ricafort said the higher gross borrowing in November was due to the need to close the budget deficit.
“This can be attributed to the persistent NG budget deficit, which needs to be financed by NG borrowing/loan despite lower maturing government bonds in the fourth quarter,” he said in a Viber message.
In the first 11 months of the year, NG's gross borrowings rose 4.07% to P2.6 trillion from P2.49 trillion a year earlier.
The 11-month tally was about 99.85% of the revised P2.6-trillion financing program for 2025.
By the end of November, domestic borrowing stood at 81.32% of the total.
Household debt rose 10.42% to P2.11 trillion in the period ended November from P1.91 trillion a year earlier.
This was 99.98% of the P2.112-trillion domestic borrowing program for the year.
Domestic debt included P1.19 trillion in fixed-rate T-bonds, P425.61 billion in retail T-bonds, P300 billion in fixed-rate treasury notes, and P192.2 billion in T-bills.
Meanwhile, gross external borrowing as of end-November was down 16.75% to P484.89 billion. from P582.41 billion a year earlier.
This represents 99.33% of the P488.174-billion external borrowing program this year.
Broken down, foreign debt consists of P201.35 billion in program loans, P191.97 billion in global bonds, and P91.57 billion in project loans.
Foreign debt at the end of November reflects a $3.3 billion global bond issuance that was completed late Settled in January and February.
Mr. Ricafort said there would be a seasonal increase in the budget deficit at the end of the year, which would require more borrowing to finance the growing budget deficit.
The budget deficit declined 26.02% year on year to P157.6 billion in November, but the fiscal gap still reached P1.26 trillion over the 11-month period.
This represents 80.92% of the revised full-year target of P1.56 trillion for 2025.