Rev­enues lag but deficit drops

Kathimerini English - - Front Page - BY PROKOPIS HATZINIKOLAOU

The Fi­nance Min­istry is plac­ing its hopes on the sec­ond half of the year for a re­bound in pub­lic rev­enues, as ac­cord­ing to data it is­sued yes­ter­day on the first five months of the year, rev­enues were 549 mil­lion eu­ros short of the tar­get for the pe­riod.

Min­istry of­fi­cials said that with the pro­cess­ing of in­come tax dec­la­ra­tions and the pay­ment of the FAP prop­erty tax for 2011 and 2012, the fis­cal short­falls of the Jan­uary-May pe­riod will be cov­ered in the com­ing months.

De­spite the lag in rev­enues, the bud­get re­mains within tar­get given that ex­pen­di­ture has been con­tained to a con­sid­er­able ex­tent, while the ab­sorp­tion of so­cial se­cu­rity funds’ al­lo­ca­tions from the bud­get is now at an ac­cept­able level. The data pub­lished show that the pri­mary deficit in the year to May amounted to 970 mil­lion eu­ros, against a bud­get tar­get of 4.1 bil­lion eu­ros.

The state bud­get deficit came to 3.84 bil­lion eu­ros against a deficit of 10.87 bil­lion eu­ros in the same pe­riod last year and a tar­get for 7.06 bil­lion this year to May. As a re­sult, the deficit has dropped to 2.1 per­cent of gross do­mes­tic prod­uct, against 5.6 per­cent in Jan­uary-May 2012.

Rev­enues be­fore tax re­bates dropped by 8 per­cent from last year and lagged this year’s tar­get by 3 per­cent, reach­ing 17.86 bil­lion eu­ros, while pri­mary spend­ing came to 18.17 bil­lion eu­ros, i.e. 11 per­cent less than last year and 8 per­cent less than planned.

Yan­nis Stournaras adds up the num­bers.

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