ECONOMY

State revenues expected to miss the target set for March

Monthly budget revenue data are set to show another shortfall on Wednesday when the Finance Ministry publishes the figures for March, which will pinpoint the problem areas.

The contraction in public revenues is attributed to the decline in the performance of indirect taxes and particularly value-added tax and special consumption taxes, as well as to the major tax rebates paid out last month.

That is due to the change in government policy regarding overdue receivables, a move aimed at bolstering the domestic market. In the first three months of the year tax rebates amounted to almost 800 million euros, according to sources, with one major public works company receiving 360 million euros.

State revenues are a major concern for both the government and its creditors. The latter have again asked for inspections in special categories of taxpayers such as wealthy citizens with large amounts of real estate as well as major enterprises.

They have also asked for more data on social security funds that in the first quarter of the year appear to have absorbed a considerable share of their credit allocation for 2013.