Spanish public deficit stands at 5.8 pct of GDP

Spanish public deficit stood at 5.8 percent of the country's gross domestic product (GDP) in 2014, the second highest figure within the European Union (UE) after Cyprus.

Economic newspaper Expansion reported on Wednesday that spending cuts and higher taxes implemented by the Spanish government since 2012 had made it possible for the country to meet the deficit target required by Brussels.

According to the EU statistical office, Eurostat, Spain's public deficit went from 9.4 percent in 2011 to 5.8 percent in 2014, taking into account financial aid provided to the banks.

However, although Spain met the deficit target, it is still one of the countries with the highest public deficit, only after Cyprus whose deficit stood at 8.8 percent of GDP. Slovenia, Portugal and Ireland follow Spain with public deficits of 4.9 percent, 4.5 percent and 4.1 percent of GDP respectively.

According to the newspaper, the stability of public finances is still something the country will have to deal with in the coming months, but it is optimistic as the International Monetary Fund (IMF) believes Spain is close to meet requirements from Brussels in 2015 and 2016.

Expansion also highlighted the problem of Spain's public debt that reached 97.7 percent of GDP last year. Spain's public debt had reached 69.2 percent in 2011 and nowadays its debt surpasses 1 trillion euro, which is above the average of 91.9 percent in the EU and 86.8 percent in eurozone countries.

State revenue is expected to increase thanks to the demand's recovery but still, Spain is one of the EU countries with the lowest tax revenue. It is the sixth country with a tax revenue that represents 37.8 percent of GDP.

Meanwhile, Spain's public expenditure represented 43.6 percent of GDP in 2014, which was below the average of the Eurozone countries that stood at 49 percent. Public spending fell from 45.5 percent of GDP in 2011 to 43.6 percent in 2014. Enditem