Thursday October 23, 2014 Search
Weather | Athens
22o C
16o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Deficit certain to be in double digits

 Finance Ministry circular warns state bodies they should not take budget funding for granted

By Sotiris Nikas

All categories of state revenues headed south in the first 11 months of the year, with the biggest problem regarding revenues from income tax, followed by value-added tax and customs.

This effectively renders it impossible for the state to achieve the target of collecting a total of 7.5 billion euros in December, January and February and leads to three key conclusions: first, that the real economy has reached a critical point as any new tax imposed to increase revenues can only have the opposite effect; second, that the target for the budget deficit to drop to 9 percent is not going to be attained, more likely ending at 10 percent; and thirdly, that unless the government finds a way to contain tax evasion, there is no prospect for any improvement in state revenues.

The figures for the January-November period, which Kathimerini has seen, show that income tax has brought in 9.3 percent less than in the first 11 months of last year, coming to 10.6 billion euros compared to 11.6 billion in 2010.

Value-added tax revenues dropped this year by 5 percent, or 500 million euros, due to the drop in consumption, while revenues from transaction taxes fell 29 percent, to just 439 million euros.

Revenues from paid services dropped 21.6 percent to 3.5 billion euros and total revenues from customs slid 4.7 percent, or 644.2 million euros, even though VAT on customs grew 3.5 percent.

In total, tax office and customs revenues declined 5 percent annually in the year to November, to 43.2 billion euros.

Alternate Finance Minister Filippos Sachinidis issued a circular to all state bodies responsible for the administration of public finances, dictating that they should not spend a single euro beyond what the budget has provided for.

It says clearly that state bodies should not even take for granted the funds provided by the budget, as “the inclusion of credit to them in the budget does not necessarily entail their payment.”

State bodies will therefore have to make their own plans for their funding if the state money does not suffice.

ekathimerini.com , Thursday December 29, 2011 (21:19)  
Arrivals show increase in January-June 2014 period
TBEX brings together 800 travel bloggers in Athens
Athens weighs its LNG and CNG options
Greece ranks among global leaders in tourism growth
Cyprus president to sit out EU summit due to high blood pressure
Cyprus President Nicos Anastasiades was admitted to a hospital in Brussels on Thursday morning following repeated nosebleeds caused by high blood pressure. He was discharged a few hours late...
Strong winds hamper sea travel
Winds reching 7 and 8 Beaufort led to disruptions in Saronic Gulf sea travel services from and to Piraeus, the Greek coast guard said on Thursday morning. Services were also disrupted on the...
Inside News
SOCCER
Roberto´s heroics make Kasami´s goal count
Pajtim Kasami’s goal and Roberto’s heroics in goal saw Olympiakos claim one of the biggest wins in its history on Wednesday downing Italian champion Juventus 1-0 to boost its chances of reac...
SOCCER
Third-division Iroditos punished heavily after fan death
Greek third division team Irodotos has been docked 15 points and ordered to play 10 matches behind closed doors following the death of an Ethnikos Piraeus supporter, the Hellenic Football Fe...
Inside Sports
COMMENTARY
Defusing a crisis
The crisis in Cyprus is escalating rapidly and defusing it is an extremely delicate and complicated procedure that will inevitably lead to losses for the weakest of the two sides. The course...
EDITORIAL
PM needs to step up
The public perception of the government is anything but good right now. The coalition is projecting an image of discord and constant disputes show that key ministers are unable to stay on th...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Arrivals show increase in January-June 2014 period
2. Cyprus president to sit out EU summit due to high blood pressure
3. Strong winds hamper sea travel
4. TBEX brings together 800 travel bloggers in Athens
5. Roberto´s heroics make Kasami´s goal count
6. Athens weighs its LNG and CNG options
more news
Today
This Week
1. TBEX brings together 800 travel bloggers in Athens
2. Strong winds hamper sea travel
3. Cyprus president to sit out EU summit due to high blood pressure
4. Arrivals show increase in January-June 2014 period
5. At least 11 banks to fail European stress tests, three in Greece, report says
6. Cyprus to block Turkey's EU talks after EEZ violation
Today
This Week
1. Coalition shooting itself in the foot
2. Istanbul skyscraper casts shadow over Greece's banking ambitions
3. Greece’s closed society is central to its current malaise
4. The past, present and future of the Greek debt crisis
5. Greece must stick to reforms, says Schaeuble
6. At least 11 banks to fail European stress tests, three in Greece, report says
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.