The National Government’s gross borrowing more than doubled in June after it re‑entered the global bond market and raised additional funds from domestic sources, the Treasury reported.
Total gross borrowing rose 119.54% year on year to P579.57 billion in June.
Domestic debt accounted for 59.2% of the month’s borrowing, reaching P342.98 billion, an increase of 104.67% from a year earlier.
Domestic issuance comprised P182.54 billion in net Treasury bill issuances and P160.44 billion in fixed‑rate Treasury bonds.
External borrowing surged 145.4% year on year to P236.59 billion, including P153.09 billion in global bonds, P61.28 billion in program loans and P22.22 billion in new project loans.
This represented the government’s first global bond issue in five months, following a P161.29 billion issue in January.
For the first half of the year, gross borrowing increased 14.45% year on year to P1.82 trillion, with domestic debt making up 70.1% of the total.
Domestic debt for the period rose 7.36% to P1.28 trillion, consisting of P1.02 trillion in fixed‑rate Treasury bonds and P257.7 billion in Treasury bills.
External borrowing in the first six months jumped 35.4% year on year to P544.8 billion, broken down into P314.37 billion in global bonds, P156.19 billion in program loans and P74.24 billion in new project loans.
Chief Economist Michael L. Ricafort said the increase in first‑half gross borrowing reflected wider budget deficits and higher debt maturities, especially since the pandemic.
The budget deficit widened 9.4% year on year to P264.3 billion in June, and the revised fiscal program projects a deficit of P1.66 trillion, or 5.4% of GDP, for the year.
Ricafort noted that the peso’s depreciation also contributed to the higher peso value of borrowing; the peso traded above P60 per dollar throughout June and closed at P61.36 on June 30, compared with P61.59 on May 29.
Year‑to‑date, the peso weakened by P2.57 from its P58.79 close on December 29, 2025.
He warned that catch‑up government spending to offset underspending in late 2025 could lead to wider deficits that will need to be financed by additional borrowing.
