By Lawrence Agcaoili

Total government borrowings increased 12.5 percent last year as the Bureau of Treasury issued more debt papers to domestic creditors to plug the wider budget deficit.

Data released by the Finance Department showed that the government borrowed P501.1 billion in 2008, up P55.7 billion from P445.38 billion in 2007.

Last year?s borrowings were P62.4 billion more than the revised program of P438.67 billion.

The national government issued more treasury bills and bonds and retail treasury bonds resulting in a 31.4 percent increase in domestic borrowings to P429.77 billion last year from P326.96 billion the previous year.

In all, the government sold and redeemed P163.36 billion worth of T-bills, P206.41 billion worth of T-bonds and P60 billion worth of three- and five-year retail treasury bonds to small investors as well as government-owned and-controlled corporations last year.

The amount of debt papers sold by the government to domestic creditors last year was P97 billion more- than the program of P332.72 billion.