|
Central
government net tax revenues rose 11.3 percent to 184.3
billion euros in the 10 months to October, due to a 20
percent jump in corporate tax revenues and a 15.5 percent
rise in income tax returns.
But
growth in VAT returns, which provide over a quarter of
central government income, fell to 1.1 percent from a
previously reported 9.1 percent a year earlier as property
firms forecast a 40-percent fall in 2007 house sales and
consumer confidence hit a historic low.
"This
slowdown is centered around the VAT from small and
medium-sized firms in the construction sector and
services," Ocana said during a Congressional
briefing. This would imply that Spanish consumers are
still buying with gusto, something which might be
confirmed on Wednesday when retail sales data is released.
Ocana said Spain's 2007 public sector surplus -- the sum
of central, regional and local government and social
security system accounts -- would be around the 2006
result of 1.8 percent of GDP despite a slowdown in
economic growth.
The
Bank of Spain has urged the government and political
parties not to spend the budget surplus to prop up growth
at the end of a construction boom or use it to meet
political promises in the 2008 general election. Spanish
public spending increased 5.8 percent in the third
quarter, a jump the Economy Ministry attributed to local
and regional authorities rather than the central
government.
The
government forecasts a fall in the public sector surplus
to 1.15 percent of GDP in the 2008 budget.
The
Economy Ministry plans will revise down its 2008 growth
forecast in December due to the impact of the global
liquidity squeeze, but says it will still likely exceed
its budget surplus forecast for next year. Ocana said the
revision of the current 3.3 percent 2008 growth forecast
would be by a tenth of a decimal point.
"Whether
it is 3.3 or 3.2 it will be above 3 percent, it's a
reasonable outlook," said Ocana. (Reporting by Andrew
Hay; editing by David Christian-Edwards)
Source
:
Guardian
Unlimited - UK, dated 27/11/2007
|
