Spain's public deficit reaches 5.27 pct of GDP through July
MADRID, Sept 16
MADRID, Sept 16 (Reuters) - Spain's public deficit, not counting city governments, came to 5.27 percent of economic output through the end of July, closing in on the year-end target of 6.5 percent, according to Reuters calculations based on Treasury Ministry data reported on Monday.
The budget gap at the end of July stood at 54.293 billion euros, the ministry said.
Economy Minister Luis de Guindos said earlier on Monday that the deficit was "moving toward" the goal agreed on with Brussels and said the government would not need to take additional measures - such as spending cuts or tax hikes - to keep figures on track.
The government forecasts the economy will return to growth in the second half of the year after a prolonged slump. Recovering tax revenue and lower-than-expected debt servicing costs will help Spain achieve the deficit goal, de Guindos said.
Despite drastic cuts in public spending last year, Spain did not meet its deficit target as tax income was hit by the recession and high unemployment.
After the deficit came in at 7 percent of GDP last year, not including international loans for its ailing banks, Spain won more time from the European Union to bring its deficit under control.
The central government deficit reached 4.55 percent of GDP at end-July, higher than the end-year target of 3.7 percent, the ministry data showed.
The country's 17 autonomous regions ended July with an accumulated deficit of 0.77 percent of GDP, compared with their target of 1.3 percent for the full year. Social Security reported a surplus of 0.05 percent of GDP, compared with a full-year objective for a deficit of 1.5 percent. (Reporting by Carlos Ruano; Writing by Fiona Ortiz; editing by Christopher Wilson)