Greece's state budget deficit totalled 18.1 billion euros in the January-August period, down from 18.974 billion euros target envisaged by a Medium-term Fiscal Strategy Framework, but up compared with a deficit of 14.813 billion euros in the corresponding period last year.
The Finance ministry, in an announcement, said budget revenues exceeded targets by 110 million euros, while total spending were down by 762 million euros in the eight-month period.
Net regular budget revenues totalled 30.679 billion euros, for a growth rate of 5.3 pct in the January-August period, down from 6.4 pct in the January-July period. The ministry attributed this shortfall to a larger than expected economic recession in the country and non-repeat tax revenues.
The Public Investment Program’s revenues grew by 43.4 pct or 568 million euros in the eight-month period, compared with the corresponding period in 2010.
The Ministry stressed that the implementation of new tax legislation included in a Medium-term program and the government’s recent decisions were expected to boost budget revenues in the fourth quarter of the year.
Regular budget spending grew 8.1 pct in the January-August period, reflecting higher interest spending (by 2.067 bln euros), higher subsidies to pension funds (by 1.7 billion euros), higher payments to OAED to pay unemployment benefits (by 322 million euros) and higher payments to state hospitals (by 853 million euros).
Primary spending grew 4.5 pct, or by 1.452 billion euros. Spending by a Public Investment Program was down by 30.3 pct, or 1.416 billion euros.
Greek budget deficit up 19% in Jan-Aug, BoG
Greece's state budget deficit widened by 19 pct on a cash basis in the January-August period, the Bank of Greece said on Monday.
The central bank, in a report, said this development reflected deviations both in the revenue and the spending legs. The budget deficit totaled 18.6 billion euros in the eight-month period, up from 15.7 billion euros in the same period last year. Budget revenues were down 5.0 pct to 31 billion euros, while spending rose 9.8 pct to 47.9 billion euros.