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UPDATE 1-Argentina primary surplus widens 5.5 pct in April

Wed May 23, 2007 5:52pm EDT

(Updates with comment from minister, cumulative figure, background)

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BUENOS AIRES, May 23 (Reuters) - Argentina's April primary budget surplus widened about 5.5 percent to 1.62 billion pesos ($520 million) on a surge in tax collection, the economy minister said on Wednesday.

The figure, which excludes interest payments on Argentina's debt and is seen as a gauge of the country's credit-worthiness, was up from 1.53 billion pesos a year earlier and matched the median forecast of 1.62 billion pesos given in last month's central bank survey BCRA30.

"This is an excellent result stemming from good tax receipts in April," Economy Minister Felisa Miceli told a news conference, adding that spending increased due to higher wages, pension costs and public works.

The primary surplus in the first four months of the year totaled 6.7 billion pesos, up 4.1 percent in nominal terms from the same period last year.

The government forecast in its 2007 budget a primary surplus of 3.14 percent of gross domestic product, down from the 3.5 percent surplus recorded last year.

Government spending has been growing at a higher rate than revenue in recent months, which analysts attribute in part to this year's presidential election. ($1 = 3.1125 Argentine pesos)



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