The national government's gross borrowings fell by 39 percent in March compared to the same period last year, driven by a frontloading strategy earlier in the year, according to the Bureau of the Treasury.
Data released on Friday show that total gross borrowings reached P156.6 billion in March, down from P256.5 billion in March 2024. The decline was attributed to the government's decision to secure a larger portion of its financing needs in the first two months of the year.
"The government's frontloading strategy allowed it to take advantage of favorable market conditions early in the year, resulting in lower borrowing requirements in March," the Treasury said in a statement.
Domestic borrowings accounted for the bulk of the total, at P122.9 billion, down 45 percent year-on-year. External borrowings rose to P33.7 billion, compared with P5.4 billion a year ago, due to the issuance of global bonds.
For the first quarter of 2025, gross borrowings totaled P935.6 billion, slightly lower than the P946.4 billion recorded in the same period last year. The government maintains its full-year borrowing program of P2.5 trillion, with a mix of domestic and foreign sources.
Economists noted that the frontloading may reduce the government's exposure to interest rate volatility later in the year. However, they cautioned that overall debt service costs remain elevated.