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
Makgekgenene played her part

“Ignore the noise, focus on your work”- AnonymousAs the DG of such a controversy-ridden institution, you really played your part in the fight against corruption and economic crime. Your stay at the helm of the DCEC was quickly paying dividends under your stewardship. During your tenure, there was a lot of action as those caught on the wrong side of the law were brought to court regardless of their economic or political status. We have learnt...

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