The Department of Finance (DOF) sees a higher financing requirement of P2.57 trillion for this year, amid recent adjustments made in the government’s fiscal program.
Previously, the government’s borrowing plan for 2024 was set at P2.46 trillion.
The DOF said in a statement that the government will continue to adopt a 75:25 borrowing mix in favor of domestic sources.
The higher borrowing program was attributed to the adjustment in the deficit level for 2024 as announced following the recent Development Budget Coordination Committee (DBCC) meeting.
The DBCC revised the deficit ceiling for the year to P1.48 trillion, higher than the previous cap of P1.39 trillion.
“Regarding deficit and borrowing. Based on new DBCC forecast, a lower GDP (gross domestic product) will result in lower revenues. I plan to meet both the Bureau of Internal Revenue and the Bureau of Customs soon to discuss revenue targets,” Finance Secretary Ralph Recto told reporters via Viber.
“If they hit revenue targets, then we do not need additional borrowings,” he added.
Meanwhile, the Bureau of the Treasury (BTr) yesterday fully awarded bids for the auctioned treasury bills.
The 92-, 183- and 365-day securities fetched average rates of 5.869 percent, 5.988 percent and 6.081 percent, respectively, ending lower, if not flat, from the previous auction.
The auction was 3.4 times oversubscribed, attracting P51.2 billion in total tenders.
With its decision, the BTr raised the full program of P15 billion for the auction.
