MANILA - The Philippines plans to raise P65 billion ($1.4 billion) from local debt issues in the fourth quarter, lower than programmed borrowings in the previous 3 months, to help plug a record budget deficit this year, the Treasury said on Tuesday.

The Treasury had set a borrowing plan of P110.5 billion in the third quarter, but actual sales from debt auctions amounted to P73.53 billion, based on Reuters' calculations. The amount does not include sales of local debt via a tap window to government agencies and corporations.

The government raised an extra P114.4 billion from the sale of retail Treasury bonds this month, allowing it to reduce sales of Treasury bills and bonds in the fourth quarter.

The government aims to keep the budget shortfall at a record P250 billion, or 3.2% of GDP, this year.