Greek fiscal deficit down 30.2 pct in Jan-Oct

Greece’s state budget deficit fell 30.2 pct in the January-October period this year, short of a budget target of a decline of 33.2 pct for the year, the Finance ministry said on Monday.

In a report, the ministry said the country’s fiscal deficit totaled 17.334 billion euros in the 10-month period from 24.833 billion euros in the corresponding period in 2009. The ministry attributed this significant decline of the deficit mainly to a large reduction of spending and to higher revenues. Regular budget spending fell 7.1 pct in the January-October period, with primary spending down 11.2 pct (exceeding a budget target for an annual decline of 9.0 pct), while interest payments rose 5.5 pct (down from a budget target for an annual rise of 7.6 pct). Primary spending cuts reflected lower spending in pension and health and lower payroll and pension costs.

Regular budget net revenues rose 3.7 pct, up from 3.6 pct in the January-September period, reflecting a 15 pct rise in VAT revenues in October with the government expecting a further significant improvement of tax revenues in the last two months of the year.

The Public Investment Program reported a decline of 24.5 pct in spending while revenues were down 3.3 pct.