MANILA - The Philippines had a budget deficit of P210 billion for the first 8 months of the year, only P40 billion shy of its full-year fiscal gap target of P250 billion.

Data from the Finance Department showed that the country's budget deficit reached P22 billion ($461 million) in August as the government spent more to stimulate the local economy amid falling external demand.

The government has set a budget gap target of P62.5 billion in the third quarter. But with the July and August figures alone, the country's deficit is already at P56.6 billion.

Revenues in August stood at P95 billion, a 20% drop from the same month last year. Expenditures, on the other hand, plunged 0.2% to P117 billion.

The government has thrice revised upward its budget deficit goal for the year due to a slowing economy. It now expects a record budget shortfall of P250 billion this year, or 3.2% of gross domestic product (GDP).

Earlier, the country's economic managers said the country's fiscal gap would not breach 4% of GDP. - abs-cbnNEWS.com, with a report from Reuters