UPDATE 1-Brazil primary budget surplus widens in February

(Adds 2007 target, nominal deficit)

BRASILIA, March 29 (Reuters) - Brazil's consolidated public sector primary budget surplus BRPSPS=ECI widened in February to 6.68 billion reais ($3.25 billion) from 4.73 billion reais in February 2006, the central bank said on Thursday.

The result was higher than the 5.95 billion reais median estimate of 20 economists in a Reuters poll. The estimates ranged from 4 billion reais to 8 billion reais.

The government posted a primary surplus of 13.46 billion reais in January.

In the 12 months to February, the government posted a primary surplus equal to 4.36 percent of the gross domestic product, compared with 4.30 percent of GDP in the 12 months through January.

Finance Minister Guido Mantega said on Thursday the government will target a surplus of 3.88 percent of GDP in 2007, the same as it posted last year.

The primary budget surplus excludes interest payments. It is closely watched by investors as a gauge of a country's ability to service its debt.

The overall budget result BRBUD=ECI, which includes interest payments, was a deficit of 4.33 billion reais in February, compared with a 8.62 billion reais deficit in February 2006. The so-called nominal budget deficit rose sharply from the 470 million reais deficit in January. ($1 = 2.053 reais)