Spain may have to revise its 2011 budget deficit - WAOW - Newsline 9, Wausau News, Weather, Sports

Spain may have to revise its 2011 budget deficit

MADRID (AP) -

The Spanish government says it may have to revise its 2011 budget deficit upwards for a second time after spending by regional governments exceeded forecasts.

The Finance Ministry said in a statement the deficit could reach 8.9 percent of GDP after four of its 17 regions overshot their expected budgets. The regions mentioned were Madrid, Valencia, Andalusia and Castilla-Leon.

Spain's budget deficit is higher than the 3 percent threshold that was supposedly part of the euro's economic framework. The incoming government of Prime Minister Mariano Rajoy had to revise the figure upwards to 8.5 percent of GDP from the 6 percent forecast by the previous, Socialist government.

The ministry said in Friday's statement it still expects to hit its target of 5.3 percent for this year's budget deficit.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

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