Philippines Plans to Borrow $54 Billion in 2027 to Revive Growth

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Or sign-in if you have an account.1zl5qqh)hb)t2o477ml[thbt_media_dl_1.png Philippine Statistics Authority,(Bloomberg) — The Philippine government plans to borrow 3.3 trillion pesos ($54 billion) next year, up by a fifth, as it seeks to revitalize an economy rocked by the conflict in the Middle East and a corruption scandal.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe proposed debt, mostly to be raised domestically, would account for 46% of next year’s national budget of 7.2 trillion pesos, data from the Department of Budget and Management showed on Tuesday. It would be 20% higher than this year’s revised borrowing plan of 2.73 trillion pesos.The Southeast Asian nation has raised its budget deficit-to-gross domestic product ratio to 5.1% for next year, up from the 4.8% previous target as it seeks to spend more to support growth. Its outstanding debt stood at 19.07 trillion pesos as of June, roughly 66% of GDP. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againPresident Ferdinand Marcos Jr. said next year’s budget focuses on reforms aimed at long-term development. “Amid continuing global uncertainties — including geopolitical tensions, persistent inflationary pressures, and volatile energy prices — we remain steadfast in pursuing growth that is both resilient and fiscally responsible,” Marcos said in his budget message.The borrowing plan will be tracked closely by international investors, many of whom are jittery about emerging markets that are vulnerable to oil price shocks. The government is planning to raise so-called sin taxes on soft drinks, e-cigarettes and alcohol, to help pay for stimulus measures Marcos revealed during his State of the Nation Address last month. Marcos announced tax relief for households and subsidies to counter the impact of energy-price spikes on a nation that gets more than 90% of its oil from the Middle East. Fallout from the Iran War hit an economy that had already stuttered as a public works graft scandal led to a collapse in state, business and personal spending.The government is looking to raise 915 billion pesos from foreign creditors, including multilateral lenders like World Bank and Asian Development Bank, up from an estimated 815.5 billion pesos in 2026. Of that amount, 366 billion pesos will be sourced from the international bond market, compared with 314.4 billion pesos this year. It has already raised $5.25 billion in global bonds so far in 2026. Domestic borrowings planned for 2027 total 2.39 trillion pesos, up 24% from 1.92 trillion pesos this year and should account for about 72% of total debt.Philippine local bonds are among the biggest losers in emerging markets this year, handing dollar-based investors a 5% loss on a hedged basis. The peso has dropped 3.7%.The Southeast Asian nation’s proposed budget for 2027 is 6% higher than this year’s allocation of 6.79 trillion pesos. It plans a budget deficit of 1.69 trillion pesos for 2027, wider than the revised ceiling of 1.66 trillion pesos this year. “This budget prioritizes the provision of support to our country’s economic growth through strategic investments in infrastructure, education, health, food security, and social protection,” Budget Secretary Kim Robert de Leon said when his department submitted the budget plan to Congress on Tuesday. —With assistance from Karl Lester M. Yap, Neil Jerome Morales and Cliff Venzon.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.