MANILA, Philippines - The government's budget deficit in 2010 may reach close to P300 billion ($6.4 billion), higher than the government's official shortfall goal of P233.4 billion, Finance Secretary Margarito Teves said.

Teves said the government was maintaining its foreign debt programme for 2010 and any additional borrowing needed to fund the wider budget shortfall next year would be sourced locally.

"The latest projected deficit for 2010 could be slightly below P300 billion," Teves told Reuters in a mobile text message.

Recently, a former finance chief projected that the 2010 deficit will likely hit as much as P375 billion. 

For 2009, the budget deficit is expected to breach the government's P250 billion deficit goal as tax agencies miss collection targets amid allocations for stimulus spending.

Before the global economic slowdown triggered in 2008, the Arroyo administration had aimed to balance the budget in 2008. The zero-deficit target has since been delayed to 2013. - with report from Reuters