Spain will not immediately implement the International Monetary Fund's latest recommendations, which include cutting government workers' wages further, because they are non-binding advice, the prime minister said.
The IMF is one of three organisations Mariano Rajoy's government turned to for an assessment of the state of Spain's banking sector ahead of a 100 billion euro bailout for failing lenders.
The latest IMF document, released on Friday, was not part of a bank sector report, but one of regular economic analyses issued on the state of Spain's economy.
It was critical of how the country had missed its deficit reduction target in 2011, despite insisting "until almost the end of the year that the deficit was on track".
Spain's deficit for 2011 had to be revised upward twice to finish at 8.9% of economic output, instead of the 3% maximum level set by the European Union.
Mr Rajoy has set a goal of reducing the deficit to 5.3% of GDP in 2012. The IMF report called that goal "very ambitious" and said it would "likely be missed".
Mr Rajoy said the IMF proposals, contained in the report, were only suggestions and he would not implement them for now.