budget deficit: The finance ministry said it informed the European Commission that it provisionally forecast its budget deficit at 3.6 percent of gross domestic product from a previous 3.1 percent target, according to Nine News Australia. It noted a backdrop of political instability after two inconclusive elections inside a year and eight years trying to haul itself back into shape following the 2008 economic crisis. Spain, mired in political deadlock just as it emerges from a six-year recession, has admitted it will overshoot its budget deficit target next year. Two months ago, Madrid just avoided an EU fine for repeated breaches of budget rules. Brussels did not immediately comment on the latest forecast for the eurozone fourth largest economy. Brussels let both Spain and neighbouring Portugal off the hook, judging that both were trying to get their house in order and close in on the official ceiling of 3.0 percent of GDP. But the EU told both countries to stay on a path of "fiscal consolidation" as the only way to create a foundation for durable growth.
(news.financializer.com). As
reported in the news.
Tagged under budget deficit, deficit topics.