Tuesday Jul 29, 2014 Search
Weather | Athens
31o C
24o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Budget revenues still off target

 Dramatic reduction in public spending sees primary deficit contained in the Jan-to-May period

By Prokopis Hatzinikolaou

State revenue data for the first five months of the year are substantially worrying, owing to the delay in the submission of tax statements, although the reduction in expenditure has kept the budget on target, according to official figures released yesterday by the Finance Ministry.

The state is only disbursing money to pay for salaries and pensions and not for procurements or the payment of ministries’ obligations. The figures would have been much worse had the Public Investment Program not been sacrificed once more on the altar of the deficit, accentuating the deep recession the country is going through.

Net budget revenues lagged the government’s target by 666 million euros in the year to May while shrinking by 1.1 billion euros from the same period last year. The collection of 19.4 billion euros, before tax returns, compared with 20.5 billion euros in 2011. In May alone revenues amounted to 3.5 billion euros against 3.8 billion in May 2011, posting a 9.57 percent decline.

State spending, however, was 2.9 billion euros below target, at 30.54 billion euros, with budget spending dropping by 1.5 billion euros and the Public Investment Program shrinking by 1.4 billion. There was also a decline of spending by 300 million euros in salary costs. The Finance Ministry is looking into the reasons for that but assumes it is due to the early retirements.

The primary deficit, which excludes interest payments, came to 2.4 billion euros, against a target for 4.2 billion euros.

The ministry now calculates that its cash reserves will last until July 20 for the state, against a previous forecast for end-June, as the government continues to issue treasury bills. Sources suggest that the state currently has no more than 2 billion euros in its coffers.

An emergency scenario suggests that cash reserves could last until the end of the year, but only by paying for salaries and pensions and nothing else. The ministry is not contemplating such an option at this stage, though, as that would signify a killer blow to the already stagnant market.

ekathimerini.com , Tuesday June 12, 2012 (23:27)  
Bourse benchmark drops below 1,200-point level again
Greek dairy company Fage wins yogurt case in Britain
More than 120,000 households to receive special benefit
Greece names fifth privatization agency chief in four years
MPs question whether ELSTAT chief should stay
Parliament’s institutions committee raised doubts on Tuesday about whether Andreas Georgiou should continue in his role as head of the Hellenic Statistical Authority (ELSTAT) after he critic...
Thessaloniki metro workers see more delays
The aim of getting Thessaloniki’s much-delayed metro up and running by 2016 is not attainable, representatives of workers who are constructing its tunnels and stations said on Tuesday. Haris...
Inside News
VOLLEYBALL
Volleyball national team second in European League
Much as the national volleyball team tried to repeat in the finals of the European League the feat it had achieved in the semifinals, it failed to overturn the advantage Montenegro had got f...
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
Inside Sports
COMMENTARY
Through insecurity comes optimism
Prime Minister Antonis Samaras recently expressed his optimism regarding the quota of 180 Parliamentary deputies required for the election of Greece’s next president, in order for the countr...
EDITORIAL
Futile policy
The policy that Israel has been pursuing vis-a-vis the Palestinians is wrong and futile. Current tactics have failed to resolve the security issue and, at the same time, they are rapidly dra...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. MPs question whether ELSTAT chief should stay
2. Thessaloniki metro workers see more delays
3. Water company eases off debtors with under 3,000 euros outstanding
4. Central Macedonia police arrest Serb wanted in Croatia for war crimes
5. Thousands of TV viewers to lose analogue signal Friday
6. Hikers spot large fish kill at mouth of Spercheios River
more news
Today
This Week
1. Greece names fifth privatization agency chief in four years
2. Archaeological council bans international climbers' gathering at Meteora
3. Venizelos to meet Nimetz in Athens
4. World’s largest solar boat on Greek mission
5. Tsipras discusses Cyprus with Anastasiades in Athens
6. Municipal engineer dies in Thessaloniki following workplace accident
Today
This Week
1. Climber dies in Mount Olympus fall
2. Unequal after death
3. Greek sovereign debt at 174.1 percent of GDP in first quarter
4. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
5. Quadriplegic woman on life support 'dies due to unpaid power bills'
6. Front-line threats
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.