Treasury - Bigger GDP fall does not alter deficit plan

LONDON (Reuters) - A downward revision showing a bigger fall in economic output in the final quarter of last year does not change the fact that a record budget deficit must be tackled, the Treasury said on Friday.

"The Chancellor said that the fourth quarter growth figures were disappointing and today's revision doesn't change that fact," a Treasury spokesman said.

"It also doesn't change the need to deal with the nation's credit card -- the country is borrowing more this year than is spent on the entire NHS (health service)."

The spokesman also said that "survey data so far this year has exceeded expectations."

The second estimate of GDP in the fourth quarter of 2010 released on Friday showed output fell 0.6 percent on the quarter -- a larger drop than the initial 0.5 percent fall estimated last month.

(Reporting by Matt Falloon, Editing by Adrian Croft)