Friday May 29, 2015 Search
Weather | Athens
14o C
09o 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 Greece’s 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 country’s 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)  
Greek credit contraction amounted to 2.4 pct in April
Export-oriented firms benefit from euro rate
VAT hike would put several Athens hotels at risk
ATHEX: May ends with a rise of 0.3 pct
Greece, creditors seek breakthrough as clock runs down
Greece and its lenders enter a decisive weekend of negotiations in a bid to agree on a package of cuts and reforms that would unlock another 7.2 billion euros and allow Athens to keep meetin...
Coast Guard officials linked to migrant traffickers
An investigation by the internal affairs department of the Greek Police (ELAS) has linked the leadership of the country’s Coast Guard as well as officers of the police and of the National In...
Inside News
SOCCER
Wemmer pens three-year deal with Panathinaikos
German defender Jens Wemmer has signed a three-year contract for an undisclosed sum with Panathinaikos, the Greek Super League club announced on Friday. Right-back Wemmer, 29, has been playi...
SOCCER
Panathinaikos conquers PAOK through Tavlaridis goal
A Stathis Tavlaridis goal has brought Panathinaikos to practically within one point from clinching a spot in next season’s Champions League qualifiers, as the Greens made it three out of thr...
Inside Sports
COMMENTARY
Zenobia, Barbara, Christine and the general’s daughter
ATHENS – Lovely Palmyra has fallen to the zombie horde and its people are being slaughtered as the ancient city awaits its fate. It is Friday, May 22, 2015, and from my window I see the end-...
INTERVIEW
The eurozone’s ‘ambiguous’ architecture
“That’s not something you’re supposed to say in public, right?” In his humble way, Thomas Sargent, Nobel Prize winner in Economics, tries to avoid the question posed to him by Kathimerini re...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Wemmer pens three-year deal with Panathinaikos
2. Greek credit contraction amounted to 2.4 pct in April
3. Export-oriented firms benefit from euro rate
4. VAT hike would put several Athens hotels at risk
5. ATHEX: May ends with a rise of 0.3 pct
6. Greece, creditors seek breakthrough as clock runs down
more news
Today
This Week
1. Greece creditors say no deal near as G-7 frustration vented
2. Only Greece can end its miserable 'Groundhog Day'
3. Next Greek aid program isn’t on table yet, says Moscovici
4. 12 Russians injured in lightning strike at ruins on Crete
5. Some blame EU Commission for Greek obstinacy in debt talks
6. The eurozone’s ‘ambiguous’ architecture
Today
This Week
1. Hotel contracts with a ‘Greek default clause’
2. Some 300 mln left banks on Tuesday
3. Neither Grexit nor a dual currency will solve Greece’s problems
4. No more 'quick and dirty' fixes for Greece
5. Romantic notions meet reality
6. Endless confusion and worry
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.