MANILA, Philippines -- The government said Tuesday it had a budget deficit of P9.0 billion ($180.1 million) in October as it increased spending to counter the impact of the global financial crisis.

Lackluster revenue growth at the main tax agency also contributed to the larger fiscal shortfall.

The latest data brought the government's budget deficit in the first 10 months of the year to P62.3 billion, higher than the shortfall of P41.5 billion in the same period of 2007, finance undersecretary Roberto Tan said at a news conference.

The Philippines expects its 2008 budget deficit to be within a target of P75 billion or 1.0 percent of gross domestic product (GDP), but the shortfall will rise to as much as P102 billion next year on lower revenues as the economy slows.

The government has said it would be difficult to balance its budget by 2010 as planned because of the global financial crisis. Socioeconomic planning Secretary Ralph Recto said last week he expected Manila to incur a budget deficit of 0.5 percent of GDP in 2010.

($1 = P49.96)