ATHENS (MNI) – Greece’s state budget deficit shrank 29.8% in the
ten months from January through October, compared with the same period a
year earlier, according to preliminary data released by the Finance
Ministry.
The government’s goal for that 10-month period was a 32%
contraction in the deficit. The figures showed that revenue gains
continued to fall short of the government’s goal, increasing concern
that the deficit target set for 2010, which is a reduction of 36.9%,
will not be met.
The budget deficit, excluding spending by state-owned companies,
stood at E17.4 billion at the end of October, down from E24.8 billion in
the year earlier period, the ministry said.
Net ordinary budget revenues rose 3.7%, well below the +8.7%
target for the whole year. Increased revenue is expected in the last two
months of the year from income, property and road taxes, and a tax
amnesty, the ministry said.
The Greek government’s 2010 goal is for a budget deficit of 7.8% of
GDP. However, that estimate is expected to change after Eurostat’s
much-anticipated upward revisions to the 2006-2009 deficit and debt
figures, expected to be announced next week. The revisions, according to
Finance Minister George Papaconstantinou will lead to an “update” in
the estimates of the 2010 budget target.
The Greek press has widely reported that the projected 2010 deficit
will be revised to 9.3%-9.5% because of the inclusion of debt from
state-owned companies and other organizations in the wider public sector
and an E2 billion shortfall in revenue this year.
On Monday, officials from the European Commission, the ECB and the
IMF will arrive in Athens for a new round of inspections to determine
whether Greece is eligible to receive the third E9 billion installment
of the E110 billion loan package it signed up for last May.
–Angelika Papamiltiadou, a_papamiltiadou@hotmail.com
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