Thursday September 18, 2014 Search
Weather | Athens
27o C
20o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Spending moratorium in place

 Government has placed priority on ensuring it can pay salaries and pensions in coming months

With a view to securing the payment of salaries and pensions in the public sector until the next bailout installment is approved by Greeces so-called troika of international creditors, the government has unofficially imposed an effective moratorium on all other outlays.

Government spending for this year has been budgeted at 108.5 billion euros (including a sum for the recapitalization of banks). Of this, only 40.9 billion had been spent by the end of July. Primary spending, the public investment program and the settlement of outstanding arrears to suppliers have been put on hold, being the only ways of keeping the deficit on target, especially given the difficulty in raising revenues.

According to Finance Ministry data, the total expenditure on investment and operating expenses in the January-July period should have been at least 4.4 billion euros more than it actually was. At the same time, debts to suppliers since the beginning of the year have risen 15.4 percent, or 887 million, and have come to total some 6.6 billion euros. In particular, the available data shows:

I.) According to targets set, the government should have approved credits of 29.5 billion by the end of July but actually fell 2 billion euros short. It also devoted 8 million euros less than the target to subsidize hospitals and 207 million less on weapons programs. There was also an 160-million-euro shortfall in interest payments.

II.) The Public Investment Program has been effectively frozen, with only half of the budgeted amounts being disbursed. Only 2.2 billion euros was spent, against a target of 4.2 billion.

III.) Outstanding debts and subsidies rose from 5.7 billion euros in January to 6.6 billion in July. The biggest problem is faced by social security funds and hospitals, which are owed 2.9 billion and 1.6 billion euros respectively.

The government had agreed with the countrys lenders to spend at least 4 billion on the settlement of these arrears this year. However, for this to be realized, Greece has to present to the troika measures to save 11.5 billion euros over the next two years for the bailout money to be approved. If the government had proceeded as budgeted with expenses, the deficit at the end of July would have been 17.6 billion instead of the actual 13.2 billion euros. The difference is exactly the same as the revenue shortfall for the same period.

ekathimerini.com , Tuesday August 14, 2012 (21:05)  
Very lucky punters set to be probed
London roadshow starts with record turnout
Banks set to request 6.1 bln under TLTRO
More efforts to cut the price of milk
Police report identifies officers with ties to Golden Dawn
A year after the killing of leftist rapper Pavlos Fyssas by a Golden Dawn supporter amid allegations of links between the neofascist party and the Hellenic Police, a report by the forces in...
Increasing number of mayors blocking contract reviews
The number of mayors refusing to comply with the governments demand that they submit the contracts of all municipal employees who had their fixed-term deals turned into open-ended agreement...
Inside News
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
SOCCER
Mitroglou rediscovers scoring touch after Fulham let-down
Costas Mitroglou banished the memories of his disappointing spell in England after breaking a 10-month goal drought as Olympiakos Piraeus secured a thrilling 3-2 Champions League win over At...
Inside Sports
COMMENTARY
Loud patriotism
I admit that whenever politicians drag religious faith and worn-out patriotism into discussions I button up. I feel the same way when I see bishops blatantly getting involved in politics. To...
EDITORIAL
In need of a second wind
Greek Prime Minister Antonis Samaras and a few of his ministers have gone to great lengths to see Greece regain credibility in the eyes of its partners. Given that the state mechanism is not...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Very lucky punters set to be probed
2. London roadshow starts with record turnout
3. Banks set to request 6.1 bln under TLTRO
4. More efforts to cut the price of milk
5. Skiathos tops Greeks online summer holiday searches
6. IMF departure gets on the table
more news
Today
This Week
1. Loud patriotism
2. SYRIZA victory would spark a bank run, PM reportedly warns
3. Production of the new Pony to start by the end of the year, NAMCO says
4. Davutoglu calls for a two-state solution in Cyprus
5. Tsipras to meet with Pope Francis on Thursday
6. In need of a second wind
Today
This Week
1. Greece on standby
2. Avramopoulos appointed Commissioner for Migration and Home Affairs
3. Central Athens traffic restrictions back in force on Monday
4. Greece at bottom of social justice scale among EU28
5. EU bank tests may miss trillion dollar risk, study finds
6. Lost in the fog
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.