The government is increasing its borrowing plan for 2024 to P2.57 trillion from the initial target of P2.46 trillion set by the Development Budget Coordination Committee (DBCC).
Finance Secretary Ralph Recto said the additional funds would be sourced from both domestic and foreign creditors to cover the budget deficit for the year.
Recto sad the government would also continue to adopt a 75:25 borrowing mix in favor of domestic sources.
The DBCC recently raised the budget deficit ceiling from 5.1 percent to 5.6 percent of the gross domestic product.
“This prudent debt management strategy will allow the country to effectively mitigate foreign exchange risks, take advantage of ample liquidity in the country’s financial system and support the development of the local debt and capital markets,” Recto said.
Data showed that in the first quarter of 2024, the government raised P584.9 billion for its 30th tranche of retail treasury bonds (RTB 30) issuance, making it the largest domestic fundraising issue to date.
The RTB 30 also allowed ordinary Filipinos to invest in safe and stable sources of passive income, while promoting financial literacy and inclusion.
The Bureau of Internal Revenue (BIR) collected P591.8 billion in the first quarter of 2024, or 17.15 percent (P86.6 billion) higher than P505.2 billion it generated in the same period in 2023.
Customs collection reached P218.9 billion in the first quarter, outperforming last year’s P213.8 billion by 2.35 percent (P5 billion).
Recto also assured that addressing inflation would continue to be his top priority. The government introduced the Reduce Emerging Inflation Now (REIN) plan to mitigate this through the proactive management of price pressures.
The Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO), co-chaired by the secretaries of the DOF and the National Economic and Development Authority (NEDA), has been meeting regularly to ensure the accelerated implementation of direct measures to curb food and non-food inflation.
Recto said the government secured financing agreements with the Japan International Cooperation Agency (JICA) for two big-ticket infrastructure projects under the administration’s Build Better More program that will help drive inclusive growth for all Filipinos.