Argentina Aug primary surplus up 23 pct from yr ago

Sep 24, 2007 - Argentina's August primary budget surplus expanded 23 percent from a year ago due to greater social security inflows as well as robust revenue from sales and trade taxes, the government said on Monday.

The primary surplus rose to 2.72 billion pesos ($854 million) from 2.21 billion pesos a year earlier, Economy Minister Miguel Peirano told reporters.

The figure came in above the median forecast of 2.55 billion pesos given in last month's central bank survey.

The primary budget surplus represents excess government revenue over expenditures before interest payments and is seen as a gauge of a country's ability to service its debt.

Argentina targets a primary surplus this year of 2.96 percent of gross domestic product and a surplus of 3.15 percent of GDP next year, according to the government's 2008 budget bill.

President Nestor Kirchner said this month that his wife, a prominent senator and the front-runner in Argentina's presidential race, would aim for a primary surplus of at least 4 percent of GDP if she were to win the Oct. 28 election.

Government spending levels have shot higher during this election year, outpacing growth in revenue. ($1 = 3.185 Argentine pesos)