Philippines says to borrow $22.3 billion to finance next year’s budget

11-Jul-2018 Intellasia | Reuters | 6:02 AM Print This Post

The Philippine government said on Monday it plans to borrow up to 1.19 trillion pesos ($22.3 billion) to partly finance next year’s budget, with a quarter of that expected to be met from external sources.

The 2019 borrowing programme is about 20 percent higher than this year’s 996 billion pesos, figures released by National Treasurer Rosalia de Leon showed.

The government plans to borrow up to 294.2 billion pesos from external sources and raise 891.7 billion pesos from the domestic market for next year’s spending, she told reporters.

De Leon said a euro bond issue is “another option we can explore for financing,” but gave no other details about external borrowing plans for next year’s budget.

President Rodrigo Duterte’s administration is rolling out a massive $180 billion “Build Build Build” programme to construct new roads, bridges, railways, airports and seaports during his six-year term that ends in 2022.

The government has vowed to maintain its aggressive spending strategy, which helped the domestic economy clock a robust 6.8 percent annual growth in the first quarter, until 2022.

Last week Duterte’s economic team raised the deficit spending ceiling for 2019 to the equivalent of 3.2 percent of GDP, or 624 billion pesos, from 3.0 percent previously.

The government will propose to Congress a 3.757 trillion pesos budget for 2019, compared with this year’s cash-based budget of 3.175 trillion pesos. billion-to-finance-next-years-budget-20180709-00083


Category: Philippines

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