Mmegi

Gov’t to lift borrowing limits as deficits persist

Tightrope act: Gaolathe’s warnings of drastic austerity were apparently softened in the budget speech PIC: PHATSIMO KAPENG.
Tightrope act: Gaolathe’s warnings of drastic austerity were apparently softened in the budget speech PIC: PHATSIMO KAPENG.

As public debt edges towards the 40% statutory ceiling, fiscal authorities are preparing to seek a historic expansion of government’s borrowing limits, with Treasury forecasting a P26.4 billion deficit in the next financial year that remains largely unfunded.

For the financial year 2026–2027, government is projecting a weaker fiscal position with P18.6 billion of the forecast P26.4 billion still unfinanced. Draft estimates released this week indicate that the Finance ministry plans to tap the domestic capital market for P14.1 billion in net borrowings for the deficit.

The external market, priced in US dollars and carrying an exchange rate risk, will be approached for about P12.5 billion in net borrowings.

Editor's Comment
BPF should get house in order

Speaker of the National Assembly, Dithapelo Keorapetse, has this week rightly washed his hands of the mess, refusing to wade into a party squabble that has no clear leadership and no single version of the truth.When a single party sends six different letters to the Speaker’s office, each claiming to be the authoritative voice, it is not just confusion, but an embarrassment.Keorapetse is correct to insist on institutional boundaries. Parliament...

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