ATHENS (MNI) – Greece’s government budget deficit was E12.2 billion
in the five months through May, exceeding the target under the country’s
EMU-IMF adjustment plan by E3.1 billion, according to figures released
Tuesday afternoon by the Greek Finance Minister and the General
Accounting Office.
If the government’s public investment program is figured into the
data, the January-May deficit drops to E10.275 billion. But this method
of accounting is transitory and not accepted by Eurostat, the EU’s
statistical agency.
Despite the adjustment program, and whether or not the public
investment program is included in the accounting, Greece’s deficit is
going in the wrong direction. In the corresponding period of 2010, it
was E9.1 billion.
The Finance Minister said the gap between the target and the actual
outcome was attributable largely to a harder-than-expected recession in
Greece. The country’s economy contracted a staggering 5.5% in the first
quarter. Another reason, the ministry said, was the expiration of a
special tax on a number of items.
Government spending increased by 6.4% in January-May, and was E1.1
billion above target, according to the data.
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