April 07, 2013

Gov’t borrowings posted a significant decline by 27%

According to the Bureau of Treasury, nationa borrowings significantly declined in February compared to the same period last year following the administration's announcement of lessening external borrowings. Totall borrowings in February was only at P38.51B—27% lower than the year’s borrowings of P53.48 billion.

According to the 2013 national budget, the administration has planned gross domestic borrowings to be at P567.96 billion while gross external borrowings are set to be at P189.76 billion. the government is also looking at cutting this year's deficit to 2% of GDP or P238 billion. As of February 2013, the budget gap is at P31.28 billion.

Originally, the government has planned to sell $1 billion worth of foreign currency denominated bonds to the external markets. However, Finance Secretary Cesar Purisima explained that borrowing this year foregoes it entirely will depend partly on BSP's suggestions. - BusinessWorld, Manila Bulletin