* October tax data due for release next week
* Tax revenue rising at annual rates of about 35 percent
BUENOS AIRES, Oct 25 (Reuters) - Argentina will meet its target for full-year tax revenue this month, the head of the country’s tax agency said on Monday, helped by brisk economic growth that is supporting continued strong government spending.
Tax revenue in South America’s No. 2 economy has been growing at an annual rate of about 35 percent in recent months, bolstered by export levies on a bumper soy and corn harvest and consumer taxes.
“With October’s revenue, we’re going to exceed the annual target for 320 billion pesos ($79.3 billion),” AFIP tax agency chief Ricardo Echegaray told reporters.
Strong tax revenue growth helps President Cristina Fernandez sustain public spending that is growing at annual rates of about 30 percent a year.
Fernandez’s husband and predecessor, former President Nestor Kirchner, is expected to run for a second term in an October 2011 presidential vote, and public spending normally rises during election campaigns.
Economic analysts say high public spending growth is fueling inflation running at an annual rate of about 25 percent, which in turn fuels revenue from income taxes and a value-added tax.
The government is due to publish October tax revenue data early next week. ARECI10 ($1 = 4.04 Argentine pesos) (Reporting by Karina Grazina; Writing by Helen Popper; Editing by Padraic Cassidy) (firstname.lastname@example.org; +54 11 4318 0655; Reuters Messaging: email@example.com))
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