By PNA and Joann Villanueva
The government has set a P90 billion domestic borrowing program in the last quarter of 2012, half of the current quarter’s P180 billion program.
In a memorandum to all government securities eligible dealers, National Treasurer Roberto Tan said P45 billion worth of Treasury bills (T-bills) and the same
amount of Treasury bond (T-bond) is scheduled to be auctioned off from October to December this year.
In particular, P7.5 billion worth of 91-day, 182-day and 364-day bills will be offered on October 1, 15 and 29; November 12 and 26; and December 10, 2012.
During each auction, offering for the three-month paper will be P1 billion, the six-month paper at P2.5 billion and P4 billion each for the one-year paper. These are the same levels as in the current quarter.
Similarly, P9 billion worth of five-year bond will be offered each on October 9 and November 6; P9 billion of seven-year bond will be auctioned off on October 23 and November 20; and P9 billion worth of 10-year bond will be offered on December 4.
Only three tenors of bonds will be offered in the last quarter this year, fewer than in the previous quarter.
The government’s bond offering set for the current quarter involves tenors of five, seven, 10, 20 and 25-year.
The government continues to rely on on-shore fund sources rather than foreign creditors to meet its funding requirements to take advantage of the current low-interest rate environment and lessen foreign exchange risks.
It has set a P279 billion deficit ceiling for this year, which accounts for 2.6 percent of gross domestic product, lower than the three percent share of GDP set for 2011.
As of last August, the government’s budget gap stood at P71.21 billon, 106.4 percent higher than year-ago’s P34.49 billion.
Revenues in the first eight months this year amounted to P 1.01 trillion, 11.1 percent higher than the P912.85 billion in end-August 2011.
Expenditures also continued its rise with the amount at P1.08 trillion as of last August, 14.5 percent higher than year-ago’s P947.24 billion.
For last August alone, the budget gap dropped by 72.6 percent to P2.52 billion from year-ago’s P9.22 billion.
Revenues for the month rose by 4.2 percent to P129.41 billion over year-ago’s P124.15 billion.
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