ATHENS (MNI) – Greece’s public budget deficit widened to E12.78
billion in the first half of this year, putting it 23.2% above the
government’s target of E10.374 billion, according to preliminary data
released by the Greek Finance Ministry.
In the first half of 2010, the deficit had been E9.997 billion.
The Ministry said spending rose by 8.8% y/y in the first half, due
principally to interest payments on debt and to the payment of arrears
to hospitals. Net revenues dropped by 8.3%, which the Ministry
attributed to the deeper-than-expected recession and to non-renewal of
one-off tax measures.
Greece has been under pressure recently because of its failure to
meet the fiscal targets it agreed to in exchange for a E110 billion
rescue package last year from its Eurozone partners and the
International Monetary Fund.
Late last month, Athens was forced to pass another series of
stringent fiscal measures, and a E50 billion privatization plan, in
order to receive a E12 billion loan disbursement from the rescue
package, which it needed to avoid default.
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