MANILA - The Philippine government plans to borrow P889.7 billion ($17.9 billion) from local and foreign sources next year to help finance its budget deficit and pay off debts, documents from the Bureau of the Treasury showed.

Of the total borrowing plan, P711.77 billion will come from the domestic debt market while the balance of P177.94 billion will come from foreign creditors.

The budget deficit is expected to rise to P523.6 billion next year, or 3.0 percent of the gross domestic product, from the scheduled P481.91 billion this year, also equivalent to 3 percent of GDP, the document showed.