MANILA, Philippines – Socioeconomic Planning Secretary Ralph Recto sees the budget deficit rising to P60 billion next year instead of the projected P40 billion because of the financial crisis in the United States affecting the Philippine's economic growth.

"The deficit will probably increase a little bit next year, but it will still be a very moderate increase, because the target for next year is roughly P40 billion. It is possible that if growth was readjusted to a lower rate, probably the deficit will reach P60 billion next year," Recto said in a phone interview with reporters in Malacañang.

But Recto said a P60-billion deficit would still be below 1.0 percent of the Gross Domestic Product.

This year the government could incur a P40-billion deficit, compared to the expected P75 billion, he said.

With the bad weather, Recto said the government would not spend as much on infrastructure projects in the last quarter.