Philippines says may breach 2009 budget gap goal

MANILA, Nov 4 - The Philippines may exceed its budget deficit goal this year of 250 billion pesos ($5.2 billion) due to spending related to typhoon reconstruction and despite successful sales of assets, the finance minister said on Wednesday.

Manila is looking to sell the 103-hectare Food Terminals Inc commercial estate it had valued at around $279 million and a 40 percent stake, worth about 11 billion pesos, in oil-and-gas explorer PNOC-Exploration Corp (PNOC-EC) <PEC.PS> <PECB.PS> before the year ends.

"Even with the PNOC-EC and FTI sale, because of Typhoon Ondoy and Pepeng, we will likely breach the target," Finance Secretary Margarito Teves told reporters.

Despite the wider-than-expected budget deficit, the government would likely sell Samurai bonds to plug its budget deficit early next year, said Rosalia de Leon, head of the international finance group at the Finance department. Manila previously said it wanted to sell the yen bonds before the year ends.

(For a Q&A on the budget deficit, click on [ID:nMAN386789]