Monday September 22, 2014 Search
Weather | Athens
27o C
19o 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)  
Pegging reforms to debt relief acts
Demand for diesel boosts total fuel sales
Foreign investors not overly concerned about political risk
IMF unhappy over social security debt collection
Results of probe into 20 Lagarde list names due soon
Members of the Financial Crimes Squad (SDOE) and tax inspectors involved in an investigation into the so-called Lagarde list of Greeks with Swiss bank accounts expect to be able to announce ...
Police refute reports of Jihadi training
Greece is not a training ground for Jihadis, the Greek police said in a statement released late on Friday in response to reports in the local media claiming that radical Islamists have been ...
Inside News
SOCCER
Reds beat Veria to claim league lead
Olympiakos thumped hitherto Super League leader Veria 3-0 on Saturday to go alone on top of the table for the first time after four rounds of games. Four days after putting three past Atleti...
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
Inside Sports
COMMENTARY
Universities threatened by transfers
The problem arising from the abuse of the Greek university transfer system whereby some students are allowed to move to an institution of their choice instead of the one they were admitted...
EDITORIAL
Capital changes
A sizable part of the middle of the Greek capital has been slated to receive a significant makeover with the implementation of an urban restructuring project which includes turning a key cit...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Reds beat Veria to claim league lead
2. Pegging reforms to debt relief acts
3. Demand for diesel boosts total fuel sales
4. Foreign investors not overly concerned about political risk
5. IMF unhappy over social security debt collection
6. Agenda
more news
Today
This Week
1. IMF unhappy over social security debt collection
2. Foreign investors not overly concerned about political risk
3. Demand for diesel boosts total fuel sales
4. Agenda
5. Pegging reforms to debt relief acts
6. Greece can meet its needs on its own
Today
This Week
1. Greece at bottom of social justice scale among EU28
2. Central Athens traffic restrictions back in force on Monday
3. Greece can meet its needs on its own
4. Lost in the fog
5. Record sum of new debts to the state in August
6. Democracy under Pressure | Live Streaming
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.