The increase in the country's budget deficit by P7 billion to about P300 billion this year will not affect the national government's credit rating standing, the Department of Finance (DoF) said Friday.

Finance Undersecretary Gil S. Beltran is confident that the three international credit rating firms will not downgrade the Philippines' credit ratings after the government raised its deficit program from P293.2 billion.

“They are more concerned about the deficit to gross domestic product (GDP) ratio rather than the nominal. I don't think an increase of a little P7 billion will be a basis for the possible downgrade, that's unfair,” Beltran said in an interview.

Beltran said the inter-agency Development Budget Coordination Committee (DBCC) maintained the deficit to GDP ratio of 3.6 percent this year aimed at returning to fiscal consolidation and balanced-budget by 2016.

Fitch Ratings and Standard & Poor’s Ratings Services earlier urged the Philippine government to return to fiscal consolidation.

Finance Secretary Margarito B. Teves, said any upgrade in Philippines' credit ratings by Fitch and Standard & Poor’s depend on the government's revenue performance.

“All the international credit rating agencies have a consensus on things to be done, they're concern about revenue eroding measures, and they're concern whether we will go back to the fiscal consolidation path as soon as possible,” Teves told reporters.

S&P recently raised concern over the country’s plan to narrow the budget deficit. Teves said it is likely that the government has reached its deficit target for the first semester due to higher spending.

“I think what they are interested to see is a commitment on the part of the new administration that they will go back to the root of fiscal consolidation and those commitment will have to be manifested by additional revenues, through a combination of revenue enhancement measures, new measures and improvement in tax collection efficiency,” Teves added.

Due to huge financial gap in the first four-months of the year, Teves said the Philippines has raised its deficit target for this year and there is a plan to borrow.