Matsheka takes P30bn request to Parly

Government is facing a P13.6 billion budget shortfall for the current financial year due largely to a fall in mineral revenues. Matsheka has said much of the funding for this will come through domestic borrowing as opposed to drawing down on reserves or foreign borrowings.

Government’s local borrowings, through Treasury Bills and bonds, are done under the domestic issuance programme, which dates back to 2008. From a ceiling of P5 billion in the original programme, Parliament approved the increase to P15 billion in 2011, but this limit was reached in the June 2020 auction of bonds.