National government financing plunged to P1.01 billion in September on the back of domestic debt net redemption and lower foreign borrowings, Bureau of the Treasury (BTr) data showed.
The amount was a 97.69-percent drop from P43.97 billion in the same month last year.
A reduction in borrowings means the debts the state needs to pay in the future would be smaller.
During the month, the government posted a net redemption of P14.44 billion from domestic debt. A year earlier, it borrowed a gross of P14.44 billion.
A redemption of P24.84 billion from treasury bills more than offset the P10.39 billion borrowed through the issuance of fixed-rate treasury bonds.
External financing decreased by 47.65 percent to P15.46 billion from P29.53 billion a year ago.
The total external financing in September was raised from P2.48 billion project loans and P12.97 billion program loans.
Year-to-date, government borrowings rose by 34.25 percent to P917.28 billion from P683.24 billion in the same period in 2018.
Domestic borrowings increased by 56.96 percent to P626.27 billion, while external financing rose by 2.37 percent to P291 billion during the nine-month period.
Outstanding debt stood at P7.90 trillion as of end-September, P31.39 billion or 0.4-percent lower than the previous month because of the movements of local currency, and net repayment of external and domestic loans, according to the BTr.
The Treasury bureau earlier said the government would reduce its borrowings from local sources in the fourth quarter of this year.
October to December borrowings were set at P220 billion, down 4.3 percent from P230 billion in the third quarter and 18.5 percent from P270 billion in the same period last year.
Of the amount set, the government would borrow P100 billion through the issuance of treasury bills and the remaining P120 billion through treasury bonds.
Last year, the government borrowed P897.55 billion from creditors, a 0.4-percent decrease from P901.67 billion in 2017.