(Adds quotes and details) MADRID, July 22 (Reuters) - The Spanish government has cut this year’s net borrowing target by 20 billion euros ($23.6 billion) to 80 billion euros, Economy Minister Nadia Calvino said on Thursday, citing European funds to be transferred to Spain during the summer. “We’re making this decision based on three changes. First, the approval of the recovery plan (by the EU) and the first transfers of funds, lower needs from regions and thirdly the evolution of debt markets that have allowed us to have lower debt servicing cost,” Calvino told reporters. Reuters reported last month that Spain and Portugal were likely to be able to reduce their government borrowing targets in the second half of this year. Spain’s economy expanded an estimated 2.4% in the second quarter as it recovers from the impact of the COVID-19 pandemic and is on course to growing 6% this year and 7% in 2022, Prime Minister Pedro Sanchez said in a Reuters Newsmaker event during a trip to the United States on Wednesday.($1 = 0.8480 euros) (Reporting by Inti Landauro; Writing by Emma Pinedo; editing by Jesús Aguado) Our Standards: The Thomson Reuters Trust Principles.