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THE NATIONAL Government\u2019s<\/span> (NG) total borrowings diminished by 65% in September, illustrating a reduction in public expenditure.<\/p>\n The most recent statistics from the Treasury revealed that overall total borrowings decreased by 64.89% to P128.913 billion in September from P367.183 billion during the same month last year.<\/p>\n On a month-to-month basis, total borrowings dropped by 74.65% from P508.527 billion in August.<\/p>\n Local borrowings, which constituted 93.51% of the total, declined by 16.98% to P120.548 billion in September from P145.2 billion in the corresponding month a year prior.<\/p>\n This was comprised of P111.848 billion in fixed-rate Treasury bonds (T-bonds) and P8.7 billion in Treasury bills (T-bills).<\/p>\n Foreign borrowings, which primarily consisted of project loans, plummeted by 96.23% to P8.365 billion in September from P221.983 billion the previous year.<\/p>\n \u201cThis (decrease in gross borrowings) significantly reflects the reduced proportion of foreign borrowings in the overall borrowing mix of the government and may also indicate the caution of certain private sector borrowers by minimizing US dollar-denominated and other foreign borrowings due to the foreign exchange risks involved,\u201d Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort mentioned in a Viber message.<\/span><\/p>\n The peso concluded at P58.196 per dollar on Sept. 30, down by 35.1 centavos from its P57.845 closing on Dec. 27, 2024.<\/p>\n \u201c(The) reduced volume of sanctioned foreign loans indicated this prudence concerning possible forex (foreign exchange) losses that accompany US dollars and other foreign loans,\u201d Mr. Ricafort stated.<\/span><\/p>\n Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera conveyed in a Viber message that the decreased borrowing reflected a slowdown in government expenditure, especially on infrastructure, and the government\u2019s \u201cintentional recalibration of financing strategy\u201d for the fourth quarter.<\/span><\/p>\n \u201cWhile this reduction in borrowings can alleviate immediate stress on yields and debt servicing expenses, it also raises two concerns, such as if the fundamental budget deficit remains significant or increases further, the NG may need to escalate borrowings potentially at less <\/span>favorable terms,\u201d Mr. Rivera remarked.<\/span><\/p>\n