Wednesday April 22, 2015 Search
Weather | Athens
14o C
09o 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)  
Carrot to pay income tax all in one go
IOBE: No agreement would be a huge failure
Haircut on Greek banks’ collateral?
Uncertainty hits bookings from Germany and the UK
Greek PM eyes Merkel support
Prime Minister Alexis Tsipras is to meet with German Chancellor Angela Merkel Thursday in Brussels in a bid to secure a statement of political support from Berlin amid tough negotiations wit...
Mayors resist coalition´s demand to hand over cash reserves
Mayors insisted on Tuesday that they would not allow their municipalities’ cash reserves to be transferred to the Bank of Greece, as the government wants, at least until they have held a mee...
Inside News
BASKETBALL
Second win for the Reds over Barca in four days
Olympiakos is one step from the Euroleague Final Four in Madrid after downing Barcelona on Tuesday for the second time in four days, to edge ahead 2-1 in the best-of-five play-off series. Th...
BASKETBALL
Panathinaikos recovers to beat CSKA for 2-1
Three-pointer master Panathinaikos had the last laugh at the end of Game 3 of its series with CSKA Moscow on Monday winning 86-85 and reducing the Russians' lead to 2-1 in the best-of-five p...
Inside Sports
COMMENTARY
IMF needs to correct its big Greek bailout mistake
The Greek government's mounting financial woes are leading it to contemplate the unthinkable: defaulting on a loan from the International Monetary Fund. Instead of demanding repayment and fu...
COMMENTARY
Tragedy in the Mediterranean
Every time we in the West see yet another video of an atrocity committed by Islamic State or Boko Haram and express our abhorrence, and every time we are shocked to read of a boatload of mig...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Second win for the Reds over Barca in four days
2. Carrot to pay income tax all in one go
3. IOBE: No agreement would be a huge failure
4. Haircut on Greek banks’ collateral?
5. Uncertainty hits bookings from Germany and the UK
6. No leap in relations with Russia
more news
Today
This Week
1. Greek government's popularity takes a hit as talks drag on
2. Tragedy in the Mediterranean
3. No ferries on Labor Day as seamen take industrial action
4. Silence is not an option
5. Two men accused of migrant smuggling face prosecutor over deadly shipwreck
6. ECB studying curbs on Greek bank support
Today
This Week
1. Quarantine for Greek bank subsidiaries in neighboring countries
2. Time to get serious
3. Putting off payments led to Q1 budget primary surplus
4. Obama calls for flexibility in Greek reform talks in brief exchange with Varoufakis
5. Greece denies report that it is preparing for debt default
6. Greek government's popularity takes a hit as talks drag on
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.