The Bureau of the Treasury said the national government’s total borrowings in January 2025 swelled to P211.07 billion, or 243.5 percent, from P61.45 billion in December 2024.
On a year-on-year comparison, total borrowings in the first month of this year were 78 percent higher than the P118.47 billion posted in January 2024.
Of the gross borrowings in January 2025, P59.18 billion came from external sources, while P151.88 billion was from domestic sources.
The borrowings from external sources were 17.3 percent higher than the P50.44 billion in December 2024 and 158 percent more than the P22.89 billion in January last year.
Borrowings sourced domestically in January 2025 were 1,279.5 percent more than December 2024’s P11.01 billion and 7.4 percent higher than the P141.36 billion borrowings in January 2024.
From external sources, P4.65 billion was in the form of project loans, while P56.29 billion was in the form of program loans.
From domestic sources, the government raised P12.2 billion from Treasury Bills in January 2025 and P140 billion from fixed-rate Treasury Bonds.
According to BTr, the borrowings showed details of the national government’s debt position, including outstanding debt, debt-to-GDP ratio, mix of domestic and foreign borrowings, and interest and principal payments.
Jonathan Ravelas, BDO lead strategist, said the BTr report focuses primarily on the national government’s external debt and is sourced from government transactions and obligations.
“Differences in accounting and reporting standards can lead to variations in how debt figures are presented. The BSP may use international standards for external debt reporting, while the BTr follows government accounting practices,” he said in a Viber message on Sunday.
“It’s crucial for the government to manage this debt effectively to ensure economic stability and avoid potential financial strain,” Ravelas said.
Leonardo Lanzona, an Ateneo de Manila University economist, sees factors that will result in greater debt in the coming months.
“The Fed’s decision not to lower policy rates can result in higher policy rates worldwide. Once we reduce our policy rates, investors are likely to shift their position to countries with higher rates of return,” Lanzona said.
He added that the US’s high tariffs “can limit our exports, lowering demand for the peso, thus reinforcing the possibility of a depreciation.”
“Thus, the combined high tariffs and the high interest rates in the US make borrowings highly likely as the peso depreciation will require more pesos to buy the same amount of imports. Furthermore, the planned easing of the interest rate of the BSP will no longer be feasible even if it can raise consumption to spur growth. Lowering interest rates only reinforce the depreciation pressures,” Lanzona added.
Based on the Budget of Expenditures and Sources of Financing for 2025, the government’s gross borrowings for this year are projected to hit P2.55 trillion.
This amount is slightly lower than the P2.57 trillion in gross borrowings set for 2024.
Of this year’s proposed borrowings, P2.04 trillion is expected to be accounted for by local financing and P507.41 billion to come from external sources.
