MANILA, Philippines - Fiscal data released on Thursday by the Department of Finance confirmed a budget deficit of P298.5 billion in 2009. It is the highest deficit on record.

It is equivalent to 3.9% of 2009 GDP.

Last December, Finance Secretary Margarito Teves estimated that the government's full year 2009 budget deficit to have reached P290 billion or 3.7% of GDP, with a worst case deficit of P298 billion, due largely to the adverse impact of the economic slowdown on government's perenially weak revenue.

Various economists, banks, and other groups keenly watching the fiscal condition of the Philippine government had forecasted that the budget shortfall in 2009 would swell to over P300 billion.

Due to its deficit position, the Philippines has been Asia's largest sovereign debt issuer.

It faces a record budget shortfall of P293 billion, or 3.5% of GDP, this year. 

It raised $1.5 billion from a global bond sale last month, the first in Asia this year. It wants to raise as much as $1 billion from a yen bond sale this month to meet its $2.5 billion foreign debt need for this year, aimed at partly funding the budget shortfall and repaying debts.

The government is planning to sell around $500 million of retail bonds denominated in euros and dollars with maturities of three and five years to Filipinos abroad next month, sources said. - with Reuters; graphics by Lala Rimando, abs-cbnNEWS.com/Newsbreak