Osborne says IMF deficit forecast is reason to vote Conservative

LONDON (Reuters) - British Chancellor George Osborne said on Thursday an International Monetary Fund forecast that Britain is likely to miss his budget deficit forecasts means people should vote for his Conservative Party next month. Osborne was reacting as some newspapers said the IMF report on Wednesday undermined forecasts included in his recent budget statement that Britain would have a surplus of 0.3 percent of gross domestic product in the 2019/20 fiscal year. The IMF said Britain would have a budget deficit of 0.3 percent of GDP in 2020. It said uncertainty over the outcome of the May 7 election meant deficit reduction would probably be slower than foreseen by Britain's official budget forecasters, and economic growth might be slower too. "Clear warning in Fiscal Monitor of consequences for deficit of anything other than Conservative government," Osborne said in a message posted on Twitter, referring to the IMF report. Opinion polls show the Conservatives and the opposition Labour Party running neck-and-neck. That makes a hung parliament and another coalition government likely. Labour has said it will aim to balance Britain's budget in terms of day-to-day spending, but not investment, as soon as possible if it takes power. It says Osborne's more aggressive target of wiping out the deficit altogether is ideologically driven. Osborne says it is needed to protect Britain against possible future shocks to the economy. Both parties' plans are likely to change if they have to bargain with other political parties to form a government. Osborne is due to attend meetings of global policymakers at the IMF in Washington over the coming days. (Reporting by William Schomberg; Editing by Larry King)