Government borrowings shrink 32% in October

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December 1, 2025 | 12:00am

MANILA, Philippines — The national government’s borrowings in October declined by 32 percent year-on-year, with data from the Bureau of the Treasury (BTr) showing a higher domestic debt than foreign exchange-dependent credit.

Based on the national government’s financing from the Treasury, the country’s gross borrowings declined to P87.81 billion in October from P129.26 billion a year ago.

Of the amount, gross domestic borrowings totaled P73.05 billion, about 8.3 percent higher than the P67.46 billion recorded in October last year.

On the other hand, gross external debt dropped sharply to P14.76 billion, a significant decline from the P61.8 billion recorded a year earlier, reflecting a reduced reliance on foreign borrowing for financing needs.

The total financing program picked up following a counterbalance in August and September, due to maturing debts that the national government had repaid in the previous months.

For October alone, amortization for both domestic and external debts amounted to P2.49 billion and P5.93 billion, respectively.

Amortization spending refers to the allocation of funds for repaying the principal amount of government loans, effectively reducing the overall debt burden and reflecting efforts to manage fiscal responsibility.

For the 10-month period, the government’s domestic gross borrowings registered a 9.1-percent expansion to reach P2.03 trillion, from the P1.86 trillion recorded during the same period a year earlier.

Meanwhile, external borrowings declined by nearly 21 percent to P449.35 billion this year from P566.25 billion in the same period last year.

The country posted a budget surplus of P11.2 billion in October, fueled largely by a significant decline in government expenditures than revenues, amid the national government’s tamed spending.

The national government will borrow a total of P437 billion through short-term Treasury bills and long-term Treasury bonds between October and December as part of its borrowing program.