BUSINESS

Revenues and exports decline

By Prokopis Hatzinikolaou

With social security funds sinking fast and public revenues trailing the budget target by 926 million euros in the year?s first five months, according to Finance Ministry figures released on Monday, the government will need to think laterally to find solutions that will reverse the situation while also avoiding new tax measures.

While direct taxes have shown a positive picture thanks to the property levy, indirect taxes have lagged considerably compared to last year, owing to the drop in consumption.

However, the drastic cuts in public spending, amounting to 2.9 billion euros in the January-May period, meant that the budget deficit came to 10.8 billion euros, against an annual target of 14.1 billion.

Political uncertainty in the last few months has also taken a toll on exports, which in April posted a 3.2 percent annual decline according to data that the Hellenic Statistical Authority (ELSTAT) released on Monday. Imports contracted by 8.5 percent in the same month.

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