Gov plans P3T local borrowings for 2021 budget

The Philippine government plans to borrow P3 trillion next year to fund more than half of its proposed P4.5-trillion budget for 2021, continuing the focus on local borrowing to minimize foreign exchange risks.

Finance Secretary Carlos Dominguez III stated that this represents a similar borrowing plan as in 2020, where borrowings make up about 69% of the current year's budget.

The government will maintain a 75:25 ratio in favor of domestic sources for both years to mitigate foreign exchange risks and volatility.

Revenue collections by top agencies such as the Bureau of Internal Revenue (BIR) and Bureau of Customs (BoC) exceeded their revised July targets, with BIR collecting P126.72 billion against a target of P124.14 billion and BoC collecting P50.07 billion versus a goal of P47.68 billion.

Despite the revenue boost in July, national government's outstanding debt reached a record P9.054 trillion as of end-June, highlighting the impact of borrowing on financial health.