Wednesday April 23, 2014 Search
Weather | Athens
23o C
15o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Budget beats the targets set for 2012

 Containment of spending brought deficit lower than expected, despite shortfall in revenues

By Prokopis Hatzinikolaou and Sotiris Nikas

The state budget appears to have beaten the targets set for 2012, according to preliminary figures released on Thursday by the Finance Ministry, even though revenues lagged both the target and the 2011 intake.

The budget deficit has come to 15.9 billion euros against a target for 16.3 billion, while the primary deficit undercut the target of 4.6 billion euros, ending up at just 3.7 billion. This was due to the dramatic decline in expenditure, the curtailing of the Public Investment Program and the considerable reduction in tax refunds.

Net revenues amounted to 51.7 billion euros in the January-December 2012 period, which was 4.1 percent lower than those in 2011, and 1.3 percent or 687 million euros below the target set for 2012. The shortfall is attributed to the reduced inflow from the European Union toward the Public Investment Program, which was 1 billion euros below target. Budget spending amounted to 67.6 billion euros, down from a target for 68.7 billion.

However, the optimism recorded over the last few weeks should not lead to the relaxing of efforts to streamline the economy, the Foundation for Economic and Industrial Research (IOBE) warned on Thursday, adding that an economic rebound can be expected by the first quarter of 2014.

In its quarterly report the foundation forecast that the contraction this year will end up at 4.6 percent, from 6.6 percent in 2012, but unemployment will climb to 27.3 percent from 24.5 percent last year.

IOBE believes that the rebound of the Greek economy cannot rely on consumption, especially with borrowed money. In this context, the main factor that it says will kick-start the rebound is investment in public works, through the direct inflow of funds from abroad, from the Greek private sector and via investment as a result of privatizations.

Nikos Zonzilos, a research associate at IOBE, said during the presentation of the report on Thursday that the problem of unemployment will be resolved but it will take time. IOBE believes it will take many years for the jobless rate to return to the 2008 level of below 9 percent.

ekathimerini.com , Thursday Jan 10, 2013 (22:41)  
Credit Agricole said to seek buyer for $554 million Greek loans
Greece qualifies for new debt relief after 2013 budget surplus
Greece, Germany sign deal for IFG
NBG to break free of sovereign shackles with senior bond
Woman dies after falling off state building roof
Police in the district of Peristeri, in western Athens, were investigating the circumstances surrounding the death of a woman who fell off the roof of an Attica regional authority building e...
Tunisian sought over employment scam
Police in Thessaloniki were seeking on Wednesday a Tunisian national over an alleged employment scam. The 59-year-old suspect is believed to have charged 102 people seeking employment over 6...
Inside News
BASKETBALL
Reds and Greens stay alive in Euroleague
Easter and home advantage worked wonders for Panathinaikos and Olympiakos who stayed alive in the Euroleague play-offs beating CSKA and Real Madrid respectively on Monday in Greece. Shak...
BASKETBALL
Greens lose badly as CSKA Moscow
Panathinaikos has a mountain to climb in order to reach the Final Four of the Euroleague after losing at CSKA Moscow on Friday for a second time in two days, only this time it was comprehens...
Inside Sports
COMMENTARY
Its too soon for Europe to declare victory
There was a time not so long ago when the vast majority of experts agreed that a country could not emerge decisively from a financial crisis unless it solved problems of both stocks and f...
COMMENTARY
Realitys other side
There is plenty of evidence pointing to the fact that the countrys real economy has hit rock bottom and is currently entering a phase of growth. Those who know the market well tend to suppo...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Credit Agricole said to seek buyer for $554 million Greek loans
2. Greece qualifies for new debt relief after 2013 budget surplus
3. Greece, Germany sign deal for IFG
4. NBG to break free of sovereign shackles with senior bond
5. Greece meets budget target for more debt relief from creditors
6. Woman dies after falling off state building roof
more news
Today
This Week
1. FBI seeks to identify victims of suspected US child molester who worked abroad, including Greece
2. Greek debt swells again as Samaras looks to creditors for relief
3. Tunisian sought over employment scam
4. Woman dies after falling off state building roof
5. Greece sees 2013 primary budget surplus at 1.5 bln euros, says deputy finance minister
6. Greece meets budget target for more debt relief from creditors
Today
This Week
1. Greece's market return mirrors return of tourists
2. Greece startup leaders say they cant break jobless cycle alone
3. Ground-breaking Good Friday mass signals thaw in Cyprus
4. Mayoral candidates clash over Athens mosque plans
5. Government looks to kick on
6. Greece offers to help find Turkish F-16 lost in 1996
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.