Jan-July govt budget surplus beats target

Greece’s central government attained a primary budget surplus of 3.05 billion euros in the first seven months of the year, beating its target by 955 million euros thanks to lower spending, Finance Ministry data showed yesterday. The central government surplus excludes the budgets of social security organizations and local administration. It is different from the figure monitored by Greece’s EU/IMF lenders but indicates the state of the country’s finances. The government’s target was for a primary budget surplus – which excludes debt-servicing costs – of 2.09 billion euros for the first seven months of the year. Net tax revenue came in at 26.3 billion euros, 656 million euros below target, while spending reached 27.5 billion euros, below a target of 28.6 billion euros. The government is aiming for a general government primary budget surplus of 1.9 percent of gross domestic product this year, based on its medium-term fiscal strategy plan. The bailout target is for a primary surplus of 1.75 percent of GDP. rates – would be unlikely to push for an abrupt tightening when rate setters meet again in the autumn. “The signs of a sustained turnaround in terms of inflation are muted, so far,” Dombret said in a speech in Pretoria, South Africa. “There is therefore a broad consensus on the whole that an expansionary monetary policy is very much justified.” Dombret said views differed among ECB rate setters on the degree of support. “Where perspectives do differ, though, is on how strongly the ECB should step on the monetary policy pedal and what instruments it should use,” he said. ECB policymakers are due to discuss the future of their 2.3-trillioneuro bond-buying program, with a decision expected in October. Market expectations are for an extension of the program, albeit at a lower pace than