MANILA  -The Philippines may post a record budget deficit of P270 billion ($5.6 billion) this year, a Reuters poll showed on Tuesday, bigger than a government target of P250 billion.

Finance Secretary Margarito Teves maintained after May budget figures were released on Tuesday that the government goal, equivalent to 3.2 percent of GDP, would still be met even though economic growth is expected to slow sharply.

The Reuters poll of 10 economists produced a median forecast of P270 billion.

Five respondents said the deficit would be bigger than the government's target of P250 billion. Four adopted the government's target and one forecast was slightly smaller.

"The P250 billion is a reasonable number, but there is substantial risk. We will see a worse outcome primarily if the recovery is not meaningful and there is no improvement in collection and if it deteriorates," said Jen Lauschke, strategist at DBS Bank in Singapore.

DBS expects the deficit to shoot up to P340 billion under a worst-case scenario with the best-case at P280 billion to P290 billion.

Teves said he is confident the deficit will be capped at P250 billion, the third target set this year. May's budget deficit was P11.4 billion, making the five-month shortfall P123.2 billion.

"The softening revenue trend will be hard to correct as corporate tax slack after the tax rate reduction will be difficult to compensate for in an environment of falling profits," said economist Vishnu Varathan at Forecast Pte.

"Burdening the economy with excessive taxes at this point is also not too attractive an option, and that means that a weaker fiscal position is inevitable, and must be funded by debt."