UPDATE 1-Brazil to cut spending to offset slumping revenue

(Recasts, adds comment on reserve requirements)

SAO PAULO, July 6 (Reuters) - Brazil's government plans to rein in public spending to partially compensate for a slump in tax revenue caused by a severe economic slowdown, Finance Minister Guido Mantega said on Monday.

"We're going to cut expenditures to offset the drop in tax receipts," Mantega said at an event in Sao Paulo.

He did not specify where spending would be cut but said there were no plans to target "priority areas for the government," without offering any details.

Mantega also said the government has no plans to further reduce its primary budget surplus target as a way of freeing up money for investments.

He also suggested the government could take additional measures to increase the availability of credit, such as further reducing reserve requirements for banks.

Since the credit crisis took a turn for the worse last September, Brazil's government has freed up about 100 billion reais ($50.5 billion) for lending by relaxing reserve requirements for banks. ($1=1.98 reais) (Reporting by Aluisio Alves; Writing by Todd Benson; Editing by James Dalgleish)