NEWS

Closer watch on public spending

Undeterred by the fact that it amassed more public revenues than expected last year, the government is working on a draft law to form an independent team of investigators to check on the finances of state bodies, sources told Kathimerini yesterday. The government hopes the checks will lead to the reduction of waste and corruption in the civil service. Currently, inspectors look into the finances of prefectures, regional authorities, ministries and the office of the Greek president. These bodies are responsible for spending some 6 percent of the state budget. However, sources said that a bill now in the hands of Economy and Finance Minister Giorgos Alogoskoufis proposes to empower a new inspectorate to look at the books of public utilities, local government offices and public services. The bill is due to be submitted to Parliament next month and is expected to give the new Public Finance Inspectors the power to check not only if money is being spent legally by the various bodies but also if it is being spent appropriately, and whether the organizations are monitoring their own expenditures. Alogoskoufis has made it clear that cutting back on public waste is a significant tool in Greece’s battle to reduce its deficit. Although buoyed by the news yesterday that the increase in public revenues for 2005 came in at 6 percent rather than the projected 5 percent, the government shows no sign of letting up in its efforts to tidy up public spending. The new body will have the power to take temporary measures, such as suspending civil servants, in cases where inspectors believe there is some form of mismanagement. They will also be able to put an end to practices that appear to be damaging a public body until a full investigation is conducted.

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