UPDATE 1-Chile 1st-qtr fiscal deficit 0.04 pct of GDP

* Fiscal deficit in first quarter around $80 million

* Full impact of quake not reflected in first quarter

* Quake impact to be felt in coming quarters
(Updates with budget director comments, details)

SANTIAGO, April 30 (BestGrowthStock) – Chile’s fiscal deficit was
0.04 percent of gross domestic product in the first quarter, as
surging copper prices boosted revenues, but it does not fully
reflect a devastating Feb. 27 quake, Budget Director Rosanna
Costa said on Friday.

The fiscal deficit in the World. No.1 copper producer
totaled 42 billion pesos during the first quarter, she said,
equivalent to around $80 million.

Chile’s fiscal deficit in both the first and fourth
quarters of 2009 was 0.7 percent of GDP, while for the whole of
2009 it was a record-large 4.5 percent.

“While budget execution in March was affected by the
earthquake, public finances in the first three months of the
year did not reflect the full magnitude of the quake, which
will be reflected in coming quarters,” Costa told reporters.

Finance Minister Felipe Larrain said this month Chile sees
a structural deficit of 1.2 percent of GDP for 2010, and that
the government will boost spending to rebuild cities and
industries ravaged by the quake. For more see [ID:nN0999996].

Conservative President Sebastian Pinera, who took the helm
in March, just days after the quake, this month unveiled a plan
to raise $8.4 billion to fund the state’s share of post-quake
reconstruction. [ID:nN16140658]

Total government revenue during the first quarter was $5.3
trillion pesos ($10.08 billion), up 18.9 percent from the same
period in 2009, thanks to surging prices for No.1 export copper
as well as higher tax revenue from mining companies.

Investing Advice
($1 = 526.29 pesos)
(Reporting by Antonio de la Jara and Simon Gardner; Editing by
James Dalgleish)

UPDATE 1-Chile 1st-qtr fiscal deficit 0.04 pct of GDP