The National Government plans to borrow up to ₱824 billion from domestic sources in the first quarter of 2026, the Bureau of the Treasury (BTr) said on Tuesday, December 23.
In a notice posted on its website, the BTr said it aims to raise ₱324 billion from Treasury bills (T-bills) and as much as ₱500 billion from Treasury bonds (T-bonds) from January to March.
The planned borrowing is 88.56 percent higher than the ₱437 billion program in the fourth quarter and 82.3 percent above the ₱452 billion actually raised in the October-to-December period.
“There are really limited awards in Q4 because T-bill and T-bond issuances and maturities are also limited, especially in December in view of the Christmas holiday season and holiday mode in the second half of December,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said via Viber.
For January alone, the government plans to borrow ₱268 billion, consisting of ₱108 billion from T-bills and ₱160 billion from T-bonds. T-bill auctions are scheduled weekly throughout January, while up to ₱160 billion in T-bonds will also be offered.
Ricafort said the borrowing program reflects plans to boost foreign borrowing by 60 percent to $5.3 billion as an alternative to local funding.
“(This is) also a function of the catch-up spending plan by the NG to make up for the reduced government spending due to the anomalous flood control infrastructure projects in the latter part of 2025,” he added.
Government spending fell for the fourth straight month in November to ₱498.3 billion, down 9.61 percent year-on-year, amid tightened disbursements linked to the flood control corruption controversy.
For 2026, the government plans to borrow ₱2.682 trillion, up 3.15 percent from this year, equivalent to 5.1 percent of gross domestic product.
About 77 percent will come from domestic sources, while 23 percent will be sourced abroad. The BTr also announced it has increased the number of competitive bids per participant in Treasury auctions to 20 lines from 10.