Philippines cuts 2009 GDP f'cast,ups budget deficit

Published: 10 Jun 2009 17:28:42 PST

MANILA, June 10 - The Philippine government slashed on Wednesday its economic growth target this year to 0.8-1.8 percent from a previous goal of 3.1-4.1 percent, according to new estimates released by an inter-agency body.

The Development Budget Coordination Committee (DBCC) also widened the 2009 budget deficit target to 250 billion pesos ($5.3 billion), or 3.2 percent of GDP, from 199.2 billion pesos, or 2.5 percent of GDP.

The new budget deficit goal, the highest on record in absolute terms based on available government data since 1993, would require an increase of 52 billion pesos in this year's borrowing plan, officials said.