Government slashes spending on infrastructure

The Public Works Ministry will take the brunt of the additional spending cuts the Spanish government is implementing to ensure it meets its deficit-reduction target for the year.

Of the 654 million euros the government announced that it wanted to shave off outlays a few weeks back, the Public Works Ministry will account for 500 million euros, according to the text of a resolution approved by the Cabinet on October 14, to which EL PAÍS has had access.

The cuts at the ministry represent about 10 percent of its initial budget allocation for this year. A spokesman for the ministry said Wednesday the cuts were assumable, but added the department is still working out how best to implement them.

The departments affected have until November 5 to submit their plans for the reduction in outlays.

After the Public Works Ministry the Environment Ministry is most affected. It will have to find savings of 20.3 million euros. The Defense Ministry will have to reduce spending by 19.1 million euros.

The government is aiming to reduce the budget deficit for all of the public administrations this year to 6 percent of GDP from 9.2 percent last year. However, the Bank of Spain at the start of this week questioned whether the goal could be met. There are serious doubts about the regions' ability to meet their target of 1.3 percent of GDP.