Philippines says may raise budget deficit target

Published: 24 May 2009 17:58:48 PST

MANILA, May 25 - The Philippines may raise its 2009 budget deficit target from 199.2 billion pesos ($4.24 billion), or 2.5 percent of GDP, Finance Secretary Margarito Teves said on Monday.

"We might have to," he told reporters when asked if slowing growth could lead to increasing the deficit target.

But he added: "I guess this will have to be assessed in relation to other factors that are available."

These factors could include the likely direction of the inflation rate, he said.

The government has said annual growth in the first quarter is likely to have been 1.8-2.8 percent after GDP grew 4.5 percent in the fourth quarter of last year.