Dec. 20 (Bloomberg) -- Spain’s central-government budget gap narrowed in the first 11 months of 2011, boosting the government’s chances of meeting its full-year deficit target.
The shortfall through November shrank to 52.4 billion euros ($68.5 billion), or 4.84 percent of gross domestic product, from 55.1 billion euros a year earlier, the Finance Ministry in Madrid said in a statement today.
The government will probably meet its full-year deficit target of 4.8 percent as revenue will rise and spending decline in December, Deputy Finance Minister Juan Manuel Lopez Carbajo told reporters in Madrid. The overall public-sector shortfall, targeted at 6 percent this year, also includes regional balances and the social-security system.
Prime Minister-elect Mariano Rajoy, due to be sworn in tomorrow, pledged to shrink the public sector and reduce spending to tackle the euro area’s third-largest deficit. All components of public spending may be reduced except pensions, which will rise in January, he told Parliament in his inaugural speech yesterday.
--Editors: Jeffrey Donovan, Eddie Buckle
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