Philippine government borrowing will climb to an all-time high this year to fund a record budget deficit as a revenue slump persists and public spending rises.

The government will borrow 718.5 billion pesos ($15.7 billion) from overseas and domestic markets this year to fund a budget shortfall of 293.2 billion pesos, data from the Bureau of the Treasury showed. That’s an increase of 8.8 percent from an earlier debt plan of 660.4 billion pesos. The deficit target was 233.4 billion pesos previously.

The Southeast Asian nation’s $167 billion economy is headed for a 13th year of budget deficits, hobbled by falling tax collection and the cost of repairing $4 billion of damage from last year’s storms.
The government raised the overseas bond sale plan this year to $2.5 billion from a previous plan of $2 billion, Finance Undersecretary Rosalia de Leon said.

The government’s borrowing mix this year will be 66 percent domestic and 34 percent foreign, compared with a previous ratio of 72 to 28, de Leon said in an interview.