State budget has reverted to deficit

State budget has reverted to deficit

Greece has returned to budget deficits, instead of surpluses, due to the coronavirus pandemic, Bank of Greece data for the January-April period have shown, while the government is preparing to announce a new package of financial measures for the June-September period, probably on Wednesday.

The primary budget deficit (on a cash basis) stood at 2.6 billion euros in the year to end-April, against a surplus of €232 million at the same time last year. 

The impact of the health crisis is reflected both in reduced revenues and increased expenditure: Revenues added up to €13 billion against €14.6 billion a year earlier, and spending jumped from €16.5 billion in 2019 to €18.1 billion this year.

The central government debt has also increased, with a rise in repos in the first quarter of the year, according to the bulletin of the Public Debt Management Agency (PDMA).

The debt had reached €361.8 billion by end-March from €356 billion at end-2019. Notably, in that quarter, the state issued a 15-year and a 30-year bond, totaling €5.8 billion.

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