Enough for a rainy day

22nd February 2008, Comments 0 comments

Economic growth last year of 3.8 percent helped Spain's public administrations amass a budget surplus last year of EUR 23.368 billion.

22 February 2008

MADRID - Economic growth last year of 3.8 percent helped Spain's public administrations amass a budget surplus last year of EUR 23.368 billion, equivalent to 2.23 percent of GDP, the Economy Ministry said yesterday. The surplus in 2006 was 1.84 percent of GDP. The government has said it could tap the state's well-staked coffers to help prop up the economy if activity slows more than expected.

The Economy Ministry noted that only five countries in the euro zone managed to post a surplus, with Spain's surpassed in size only by Finland.

"The state's surplus is also due to a prudent budgetary policy which maintains public spending at below 40 percent of GDP," the Ministry said.

The central government booked a surplus equivalent to 1.29 percent, the biggest ever since Spain returned to democratic rule. The Social Security system surplus was 1.25 percent of GDP.

[Copyright EL PAÍS 2008]

Subject: Spanish news

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