Friday March 6, 2015 Search
Weather | Athens
20o C
11o 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)  
Cash-strapped Greece repays first part of IMF loan due in March
Greece must repay loans in full, bailout fund head says
Jobless rate starts picking up again
Election lifted consumers’ mood
Greek and German bruisers limber up for ´rumble in the eurozone´
They are both tough men of a certain age used to getting their way. In one corner stands Wolfgang Schaeuble, the dry 72-year-old German Finance Minister and self-appointed guardian of the Eu...
BoG chief Stournaras briefs PM Tsipras on ECB´s decisions on Greece [Update]
Bank of Greece Governor Yannis Stournaras visited Prime Minister Alexis Tsipras on Friday to brief him on discussions at the meeting of the European Central Bank's governing council in Nicos...
Inside News
BASKETBALL
Barcelona beats Panathinaikos once more
For the fourth time this season Panathinaikos failed to beat Barcelona, this time in Athens, losing 81-77 on Thursday and denting its chances for a privileged top-two finish in its Euroleagu...
SOCCER
Iraklis, Apollon and Xanthi in Cup semis
The prospect of a second-division team reaching the Greek Cup final has grown considerably after two out of the three teams that made the semifinals this week come from the Football League. ...
Inside Sports
COMMENTARY
PISA, Schengen, mediocrity and isolation
Greece’s most serious problem is not the economic and political crisis, though it did contribute greatly to it. At the root of our evil lies our great isolation, not only from our partners i...
COMMENTARY
Balancing the Greek budget: The ancient Athenian perspective
Is democracy good for balancing a budget? For many today the answer is a resonating no. This answer is easy to understand. In the birthplace of democracy, Greece, the state’s budget is a mes...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Cash-strapped Greece repays first part of IMF loan due in March
2. Greek and German bruisers limber up for ´rumble in the eurozone´
3. Greece must repay loans in full, bailout fund head says
4. BoG chief Stournaras briefs PM Tsipras on ECB´s decisions on Greece [Update]
5. Barcelona beats Panathinaikos once more
6. Iraklis, Apollon and Xanthi in Cup semis
more news
Today
This Week
1. BoG chief Stournaras briefs PM Tsipras on ECB's decisions on Greece [Update]
2. Greece must repay loans in full, bailout fund head says
3. Greek and German bruisers limber up for 'rumble in the eurozone'
4. Cash-strapped Greece repays first part of IMF loan due in March
5. Greek-Turkish relations
6. Greece seeks to plug its 'Bermuda Triangle' of lost taxes
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. The Greek tax drama
3. SYRIZA feeling the pain
4. Varoufakis to make six reform proposals at Monday's Eurogroup
5. The unlikely winners of Greece's surrender on euro
6. Tsipras reversal draws Greek sympathy as party rumblings rise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.