MANILA, Philippines - The government is mulling raising its borrowings by 8% to plug this year's budget deficit, which is expected to hit a record P325 billion.

Government sources said an additional P57.8 billion debt may be tapped by government to bring its borrowing program this year to P766.4 billion from P708.6 billion.

The new borrowing plan calls for an increase in overseas debt to P254.8 billion from P220.5 billion, and domestic debt to P511.6 billion from P488.1 billion.

National Treasurer Roberto Tan said: "I cannot confirm or deny that because that's not official. Let's wait for the official announcement."

Tan earlier said the Aquino administration has no plans to sell foreign currency-denominated bonds this year, but is looking at issuing global peso bonds and retail Treasury bonds to finance the deficit.

He noted that government will only issue foreign debt if there is "compelling" reason to do so.

Locally, Tan said up to P30 billion worth of retail Treasury bonds will be sold this quarter.