The National Government incurred a budget deficit of P266.1 billion for the first 10 months to October, exceeding the full-year ceiling of P250 billion.

Finance Secretary Margarito B. Teves said the emerging 2009 deficit is P280 billion to P300 billion, which is equivalent to 3.8 percent of gross domestic product.

“The likely deficit is P280 billion assuming we sell some of the programmed assets (for privatization) while the worst case scenario is P300 billion,” Teves told reporters Wednesday. “Along the way there are events that took place that were never envisioned. I don’t think we need to be sacrosanct about the deficit numbers.”

Teves said the situation has been “extremely stressful.” But based on market feedback, the 3.8 percent to GDP deficit is an expected number considering that economic recovery, while occuring, had been slow.

To get to the P280 billion, the government will have to raise P30 billion from the sale of state assets in Food Terminal Inc. (FTI) and PNOC-Exploration Corp.

The P300 billion, in the meantime, will only happen if the Department of Finance is only able to unload the FTI properties, which are expected to fetch around P13 billion.

Teves said the best case scenario is the original deficit program of P250 billion and this is possible if, aside from the FTI and PNOC-EC sale, the DoF is successful in raising another P50 billion from the sale of government assets in San Miguel Corp.

Teves said they are still hoping that the Supreme Court will decide in favor of the government. “We’re still considering San Miguel for this year (for privatization) we’re just waiting for the Supreme Court.”