The national government paid more maturing debts in February, exceeding the amount it borrowed during the month that resulted to a net payment of P58.6 billion, the Bureau of Treasury data showed.

During the second month of 2010, the Arroyo administration's borrowings from local and offshore lenders amounted to P37.47 billion, which was set aside to cover other expenditure requirements of government.

The February 2010 net payment figure was higher than the P37.6 billion registered in the same period last year.

In January to February, the government net payment amounted to P69.35 billion.

For 2010, the Department of Finance (DoF) has programmed $2.5 billion borrowings from foreign lender, while it set P475 billion from local capital market.

The government needs to borrowing additional money to cover the projected higher budget deficit of P293.2 billion this year and to pay off maturing obligations.

In January to February, the government posted a P70.3 billion budget deficit, 4.9 percent higher compared with P67 billion in the same period last year.

Finance Secretary Margarito B. Teves, said total revenue during the period grew 6 percent to P169 billion from P159.4 billion a year ago, while government's expenditure amounted to P239.3 billion from P226.5 billion in 2009.

“We will endeavor to remain on track with our fiscal program to enable us to continue supporting the urgent needs of our people and sustain economic growth,” Teves said.