The 2014 deficit falls to 5.7% of GDP – Investing.com Spain

MADRID (Reuters) – The Spanish government deficit last year stood at 5.72 percent of gross domestic product (GDP), Product tenth below the target set by Brussels but above the target of 5, 5 percent it had set the Spanish Government, according to data provided Friday by the Executive.

“The final data compliance deficit stood at 5.7 percent,” said Vice President Soraya Saenz de Santamaria at a press conference after the Council of Ministers.

The Finance Minister Cristobal Montoro, justified the deviation of 2014 on its own target to nearly 1,700 million euros to be repaid by The amounts requested by the so-called health cent, tax on oil consumption which was declared illegal by the European justice.

Montoro reiterated Friday the government’s commitment to gradually reduce the deficit to 4, 2 percent of GDP this year to 2.8 percent in 2016 and 1.1 percent in 2017.

In volume, the budget gap of all public administrations in 2014 amounted to 60,537 million euros, representing a deficit reduction of almost 6,000 million euros compared to 2013.

MORE DEFICIT IN THE CCAA

By administrations, the budget gap of Central Administration fell to 3.54 percent of GDP, in line with expectations.

The Autonomous Communities (CCAA) returned yet to deviate from its target (1 percent) and ended the year with a deficit of 1.66 percent, representing a difference between revenue and expenditure of 17.529 million euros.

The regions even increased its deficit to 2013, when they closed with an operating loss in its accounts 1.52 percent (15,932,000).

Only four of the 17 autonomous -Navarra, Canary Islands, Galicia and the Basque Country met the limit of 1 per cent, while four-Murcia, Catalonia , Extremadura and Valencia, even exceeded two percent of GDP,

“The fiscal result of this subsector is influenced in part by the decrease in regional resources resulting from the application of the system of funding, decreased by about 2,700 million compared to 2013, “said the Finance Ministry said in a statement.

The municipalities again saving accounts administering to a surplus of 0.53 percent, compared to budget balance provided by the Executive.

Meanwhile, the Social Security ended the year with a deficit of 11.202 million euros, representing 1.06 percent of GDP, compared to 1.0 percent forecast.

Including 1,204 million euros of financial aid to credit institutions that do not count towards the achievement of the objective of deficit, the deficit closed 2014 at 5.83 percent .