THE National Government’s (NG) gross borrowing more than doubled in June after it returned to the global bond market and raised more funds from domestic sources, the Bureau of the Treasury said.
Total gross borrowing jumped 119.54% year on year to P579.57 billion in June.
Domestic debt accounted for 59.2% of the gross borrowing for the month.
In June, the NG’s domestic debt amounted to P342.98 billion, up 104.67% from a year earlier.
This consisted of P182.54 billion in net Treasury bill issuances and P160.44 billion in fixed-rate Treasury bonds.
Meanwhile, gross external borrowing surged 145.4% year on year to P236.59 billion in June.
External financing during the month consisted of P153.09 billion in global bonds, P61.28 billion in program loans and P22.22 billion in new project loans.
This marked the government’s first global bond issue in five months, after it raised P161.29 billion in January.
In the first half, NG gross borrowing rose 14.45% year on year to P1.82 trillion.
Domestic debt accounted for 70.1% of the total for the period. It rose 7.36% to P1.28 trillion.
This consisted of P1.02 trillion in fixed-rate Treasury bonds and P257.7 billion in Treasury bills.
External borrowing in the first six months jumped 35.4% year on year to P544.8 billion. This consisted of P314.37 billion in global bonds, P156.19 billion in program loans, and P74.24 billion in new project loans.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the increase in first-half gross borrowing reflected wider budget deficits in recent months.
“This is consistent with wider budget deficits that needed to be financed by additional NG borrowing … and reflects higher NG debt maturities… especially since the pandemic,” he said.
The NG’s budget deficit widened 9.4% from a year earlier to P264.3 billion in June.
Under the revised fiscal program, the government expects the budget deficit to hit P1.66 trillion, equivalent to 5.4% of gross domestic product, this year.
Mr. Ricafort said the increase in the peso value of gross borrowing also partly reflected the weaker currency.
The peso traded above the P60-per-dollar level throughout June and closed at P61.36 on June 30, strengthening by 23 centavos from its P61.59 finish on May 29.
Year-to-date, the peso weakened by P2.57 from its P58.79 close on Dec. 29, 2025.
“For the coming months, catch-up government spending to make up for the underspending since the latter part of 2025 could lead to wider budget deficits to be financed by additional NG borrowings,” he said. — Justine Irish D. Tabile