The government’s net borrowings in 2014 amounted only to P175.24 billion, a drastic cut from net borrowings the previous year, and attributed to higher revenue collection and underspending by the government for the period.
The total P175.24 billion in net borrowings for 2014 was P143.88 billion less, or 45 percent lower, than the P319.12 billion in net borrowings made by the government in 2013.
The lower net borrowings was traced to higher revenue collection by the government, which amounted to P1.908 trillion, or an 11-percent growth from the previous year’s revenue collection, and an indication that the government needed less from an array of creditors to help fund the various public-sector operations.
Underspending by the government in 2014 also contributed to the lower net borrowings for the year, with total expenditures amounting only to P1.981 trillion, or 13 percent lower than the programmed expenditures for the year. The government incurred net external borrowings of P12.57 billion in 2014, in sharp contrast to negative net external borrowings of P83.82 billion in 2013, when the government endeavored to pay back some of its maturing obligations on net basis.
The net external borrowings was brought about by higher project loans, program loan and the so-called global bonds exchange undertaken in January 2014, which amounted to P28.67 billion in foreign debt.
The government also made less amortization on its principal foreign debts in 2014, with such amounting only to P90.37 billion, as opposed to amortization in 2013 that amounted to P117.59 billion. Net domestic borrowings in 2014 amounted to P162.67 billion, which was P240.27 billion, or 59 percent, lower than the net domestic borrowings in 2013.
David Cagahastian