Gov't gross borrowing surges 78.16% year-on-year in June

In June, the National Government's gross borrowing increased by 78.16% year-on-year with both foreign and domestic debt rising.

The Bureau of Treasury reported a total borrowing of P263.99 billion in June, marking a 37.28% increase from May.

Foreign debt grew significantly to P96.41 billion in June while domestic borrowing rose by 26.50% year-on-year to P167.58 billion.

Rizal Commercial Banking Corp.'s Chief Economist, Michael L. Ricafort, attributed the high borrowing to a wider budget deficit and upcoming maturing government debt.

The government's borrowing plan was adjusted to P2.6 trillion from P2.55 trillion to fund the growing budget deficit and maintain an 80-20 funding split in favor of domestic sources.