NG gross borrowings hit P2.56T in 2024; domestic debt up 17.7%, external up 14.7%; plans P2.55T for 2025, potential deficit

The National Government's (NG) gross borrowings reached P2.56 trillion in 2024, slightly below its initial borrowing plan of P2.57 trillion.

Domestic debt rose to P1.92 trillion, representing a 17.69% increase and accounting for 75% of total borrowing last year.

External debt also increased by 14.69%, reaching P641.17 billion, though it fell short of the targeted P642.5 billion foreign borrowing.

Rizal Commercial Banking Corp.'s Chief Economist Michael L. Ricafort attributed higher government expenditure and borrowing to elevated prices and interest rates since 2022.

For 2025, the NG plans to borrow P2.55 trillion, with expectations of increased spending due to midterm elections potentially leading to a deficit breach.