Sunday August 31, 2014 Search
Weather | Athens
31o C
24o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Deficit contained to 9.1 pct in 2011

 The reduction was almost exclusively due to the decline in public spending

By Sotiris Nikas

Considerable reductions in public spending in 2010 and 2011 led to a drop in the deficit from 15.6 percent of the gross domestic product in 2009 to 9.1 percent last year, according to figures confirmed and announced on Monday by Eurostat and the Hellenic Statistical Authority (ELSTAT).

The contribution of spending cuts in the above figures is evident by the mere fact that the deficit declined by 16.6 billion euros from 2009 to 2011 after expenditures contracted by 16.9 billion euros in the same period.

In 2009 the deficit was calculated at 36.1 billion euros, dropping to 23.5 billion, or 10.3 percent of GDP in 2010, and to 19.5 billion euros last year. It therefore fared slightly better than the revised target for 2011 that had been 9.2 percent of GDP. However, the data show that public debt last year soared to 165.3 percent of GDP, or 355.6 billion euros, up from 145 percent in 2010 and 113 percent in 2008.

There are three main conclusions that can be drawn from the official budget figures. The first is that the only safe way to reduce the deficit is containing expenditure. In 2009 it had spiraled out of control, expanding by 6.7 billion euros from the year before to 124.6 billion euros. In 2010 it dropped to 114.1 billion and last year to 107.7 billion euros.

The second conclusion is that revenues were at a historic low in 2009, but recession drove them down further last year. State revenues amounted to 94.8 billion euros in 2008 and fell to 88.6 billion euros in 2009, an election year. Things improved a little in 2010 (90.2 billion euros) before the 7 percent shrinking of the economy in 2011 that brought revenues down to 88 billion euros last year.

Finally, in spite of the tough austerity measures whose performance came to between 45 and 50 billion euros from 2010 to date, the deficit was only reduced by 16.6 billion euros. This serves to explain the insistence of Greeces creditors on reducing the expenditure of the state instead of bolstering revenues through additional taxation. This is set to be reflected in new measures to be announced in June.

ekathimerini.com , Monday April 23, 2012 (23:11)  
Disappearing inflation heightens Draghi concerns
Ministry launches work experience program for unemployed graduates
Tax burden in Greece among EUs heaviest, study reveals
Coalition bent on protecting weaker groups
Traveling on public transport in Athens gets cheaper
Commuters will pay 20 cents less for tickets allowing them to use all modes of public transportation in Athens as of Monday, though they will be valid for 70 minutes rather than 90 as was th...
Push made for cuts in education as merger scheme fails
Finance Ministry officials are pressing the Education Ministry to cut costs after it emerged that a program for merging university and technical college departments failed to save 68 million...
Inside News
SOCCER
Tough draw for Greek sides in Europe League Greek stage
Following Thursday nights high, when all three Greek teams competing in the Europa League made it into the group stage of the competition, a harsh reality struck Friday as they found out wh...
JUDO
Greek judoka Iliadis triples up as Aguiar stuns Tcheumeo
Greek star Ilias Iliadis claimed his third world title in the under-90kg category in Chelyabinsk on Friday as Brazilian Mayra Aguiar and Colombian Yuri Alvear won gold in the womens under-7...
Inside Sports
COMMENTARY
Keeping an eye on international developments
The Ukrainian crisis may herald the start of a second Cold War, while there is no shortage of analysts comparing the current international climate to that of 1914 in the runup to World War I...
EDITORIAL
A few good men
It gives us a great deal of hope that we have a new batch of mayors and regional authorities, as well as university rectors who represent the voice of reason and prudence and are unafraid to...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Traveling on public transport in Athens gets cheaper
2. Push made for cuts in education as merger scheme fails
3. Govt aims to curb measures, secure loans, allow tax relief
4. DIMAR chief Kouvelis hints about presidency
5. French expert says Crete crocodile in good health, aged 4-7
6. Tensions mar regional ity swearing-in ceremony
more news
Today
This Week
1. Keeping an eye on international developments
2. A few good men
3. Disappearing inflation heightens Draghi concerns
4. Two men drown off Crete coast in strong tides
5. Traveling on public transport in Athens gets cheaper
6. Push made for cuts in education as merger scheme fails
Today
This Week
1. Attack on gay couple in Athens leaves one man needing surgery
2. Purification rituals
3. The battle against progress
4. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
5. Strong undersea quake occurs off island of Milos, felt in Athens
6. Athens finalizes Paris talks goals
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.