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Spain’s Castilla-La Mancha to Shrink Deficit by Budget Cuts

Spain’s region of Castilla-La Mancha, run by the People’s Party that polls suggest will win control of the central government in November, vowed to cut the nation’s highest regional deficit by 2012 without raising taxes.

Castilla-La Mancha, which had a budget gap of 6.5 percent of gross domestic product last year, will slash spending by 1.7 billion euros ($2.4 billion) to achieve a deficit of 1.3 percent of GDP next year, President Maria Dolores de Cospedal told reporters today in Toledo, a city close to Madrid. Cospedal is a high ranking member of Spain’s PP, which took over the region from the Socialists after local elections on May 22.