The government's borrowings in May increased 344 percent from the same period last year due to higher sale of long-term debt papers, data from the Bureau of Treasury showed Friday.

Total gross financing last month went up by P41.9 billion to P54.13 billion from P12.2 billion in the same month in 2009, which means less loan repayments has been made by the national government for the month.

The government borrowed more domestically at P44.37 billion from P11.49 billion in the same period last year, which is mainly composed of Treasury bonds.

Total external financing during the month, meanwhile, amounted to P9.8 billion from P712 million last year.

In the first five months of the year, the national government posted a 45 percent increase in gross financing to P377 billion from P258.6 billion in the same period last year.

Deputy Treasurer Eduardo Mendiola earlier said that domestic borrowing in the third-quarter of the year may match the P107 billion programmed debt paper sale of the Arroyo administration in the April to June.

Mendiola, said Tuesday that the incoming Aquino administration may sell mostly three-, five- and seven-year local- currency bonds in July to September of the year.

In second-quarter, borrowing from the local market was 3 percent lower compared with P110.5 billion in January to March.

Last week, the national government said that it is looking at boosting its borrowing this year by P5 billion to P7 billion aimed at funding the projected increase in budget deficit.

Finance Secretary Margarito B. Teves, however, said that the national government has yet to decide on whether it will sell the additional debt papers in domestic or overseas market. Teves, earlier said the country's deficit to widen to a record P300 billion this year on the back of plans to increase  spending and attain faster economic expansion.

But National Treasurer Roberto B. Tan, said in a phone interview that the country's financing gap may reach P297 billion to P298 billion this year, higher than the previous target of P293.3 billion.