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UPDATE 1-Spanish Jan-March fiscal deficit 0.7 pct GDP

Published 04/28/2009, 07:35 AM
Updated 04/28/2009, 07:40 AM

(Adds details, background)

MADRID, April 28 (Reuters) - Spain's fiscal deficit totalled 0.69 percent of gross domestic product in the first three months of the year, the Economy Ministry said on Tuesday.

The 7.586 billion euro ($9.87 billion) shortfall compared to a 3.387 billion surplus in the first three months of 2008, the ministry said in a news release.

The Ministry added in a statement that its net tax take in the first quarter fell by 11.9 percent from the same period last year to 45.550 billion euros, while non-financial outlays jumped by 15.5 percent to 42.614 billion.

Public sector borrowing requirements rose to 28.694 billion euros from 4.523 billion.

The government predicts its budget deficit will widen to 5.8 percent of GDP this year due to the impact of the recession and anti-crisis spending plans, although the Bank of Spain has forecast a gap of 8 percent. (Reporting by Manuel Maria Ruiz; writing by Jason Webb; Editing by Ron Askew)

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