Australia's Swan to impose spending cap in May budget

CANBERRA March 3 (Reuters) - The Australian government will impose its 2 percent cap on spending growth in the 2010-11 budget, to be delivered in May, Treasurer Wayne Swan said on Wednesday after data showed the economy grew at an annual 2.7 percent in the fourth quarter.

The government has promised to cap government spending at two percent when growth returned to trend. Swan said government forward estimates already met the two percent cap.

(Reporting by James Grubel)

(([e-mail]; [phone]; Reuters Messaging: [e-mail])) Keywords: AUSTRALIA BUDGET/SWAN (If you have a query or comment on this story, send an email to [e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.