ECONOMY

Deficit target ever more distant

The state owes some 2.8 percent of the gross domestic product to suppliers and third parties, aggravating cash flow problems in the market and increasing concerns of its international creditors over a nominal containment in spending.

At the same time, the general government deficit has soared to 14.69 billion euros, according to figures released on Thursday by the Finance Ministry.

The data show that the state?s obligations increased in June to 6.63 billion euros, from 5.2 billion in January, as the government seems to have stopped issuing payments to third parties, posing additional obstacles to the market?s operation.

The debts of ministries have reached 980 million euros, of which 423.2 million concerns obligations that should have been covered by the Public Investment Program.

Public hospitals owe 1.84 billion euros, social security funds? debts amount to 2.66 billion euros, local authorities have arrears of 892 million euros and other legal entities owe 245.5 million euros, the Finance Ministry data showed.

The general government deficit climbed by more than 2 billion euros within one month as it reached 14.69 billion in end-June from 12.55 billion euros by May. The government?s target for the entire year had been set for 17 billion euros, and it now appears highly unlikely to be met.

The central government?s deficit stands at a disappointing 16.40 billion euros, as revenues for the first six months of the year came to 22.54 billion euros, while expenditure amounted to 38.94 billion. A year ago the deficit stood at 13.76 billion euros.

The primary deficit came to 9.390 billion euros in June, up from 7.915 billion in May

The Finance Ministry suggested that only 794 out of the 853 general government bodies have forwarded their June data to the ministry, while the others (eight social security funds, three public corporations and one local authority, as well an another 47 legal entities) are running the risk of having their funding cut from the state budget.