Govt borrows less in May

ABS-CBN News

Posted at Jul 04 2011 11:35 AM | Updated as of Jul 04 2011 07:35 PM

MANILA, Philippines - The Aquino government borrowed less in May to finance its spending budget, compared to the previous year, data from the Bureau of Treasury showed.

The government raised P53.47 billion debt from local and foreign lenders in May, down 1.25% from P54.13 billion in the same month of 2010.

This as multilateral loans for public projects and programs fell by a hefty 75% to P2.489 billion from P9.786 billion last year.

On the other hand, local borrowings rose 15% to P51 billion, as the government issued more Treasury bills and bonds.

In January to May, the government raised a total of P270.88 billion borrowings, down over 18% from P331.39 billion in the same period last year.

This year, planned state borrowings of P830.9 billion will be used to finance the country's budget deficit, which is expected to hit P300 billion or 3.2% of gross domestic product.

The government eyes to cut its borrowings by 12% next year to P727.4 billion.