The Philippines may adjust upwards its 2009 budget deficit ceiling of P177.2 billion ($3.7 billion) at a meeting of economic managers this week, senior government officials said on Tuesday.

Any potential revision to the latest estimate, an equivalent of 2.2 percent of gross domestic product, was unlikely to reach P250 billion, said Dennis Arroyo, head of policy planning at the economic planning agency.

"We are currently reviewing the target. The numbers are still not finalised," Arroyo told Reuters. "It will not reach P250 billion."

But other government sources, who asked not to be identified because the forecast have yet to be finalised, said a technical working group would recommend to the economic managers to keep the fiscal shortfall goal for now despite lower growth estimates.

The government is expected to lower its official growth estimate this year to 3.1-4.1 percent from the previous 3.7-4.4 percent forecast due to weak exports and rising unemployment, Socioeconomic Planning Secretary Ralph Recto said on Monday.

"I'm not worried about the deficit," Recto told reporters, adding he expected the 2009 budget deficit target to be raised at the Thursday meeting of the economic team.

Last month, Recto said the budget deficit could widen to as much as P257 billion this year if tax collections fall short of target due to the slowing economy and Manila fails to sell assets.

A wider budget deficit will result in higher government borrowings to fund the fiscal shortfall. Manila borrows heavily from the local and foreign debt markets and was the first sovereign debt issuer this year in Asia, raising $1.5 billion in an offer in January.

The government had a budget deficit of P67 billion in the first two months of the year, almost matching the P68.1 billion shortfall for the whole of 2008, as it sought to pump prime the economy and prevent a sharp slowdown in growth.