ATHENS (MNI) – Greece’s central government deficit dropped 41.8% in
the first half of this year compared with the same period of 2009,
according to data released Monday by the Bank of Greece.
The central bank’s data show the central government deficit at
E11.45 billion in the January-June period this year, down from E19.68
billion in January-June of last year.
Regular budget revenues rose to E23.2 billion in the same period
from E21.7 billion a year earlier. Expenses fell to E30.1 billion from
E35.5 billion.
Despite the increase, government revenues continue to be lower than
target, due mainly to low collection of VAT and other taxes in the face
of a slowing economy and a significant reduction in consumption.
In an interview with Greek daily Mafteboriki, published today,
Finance Minister George Papaconstantinou said certain products would be
taken out of the low 11% VAT category and be put into the basic VAT
category, which carries a rate of 23%. Papaconstantinou had previously
said the government would not be taking additional measures.
He also said he favored mergers and acquisitions in the financial
sector. “There has to be a powerful Greek financial system that will
rely on its own strength and will be able to stand competitively in the
new circumstances that have been formed by the crisis,” he was quoted as
saying. “Therefore, we encourage strategic moves in this direction.”
[TOPICS: M$X$$$,MT$$$$,MGX$$$,M$$CR$]
