Greek Jan-May Budget Deficit Widens 12.9% On Year, Misses Target
June 14 2011 - 12:53PM
Dow Jones News
Greece's state budget deficit widened 12.9% in the first five
months of 2011 to EUR10.28 billion from EUR9.1 billion a year
earlier, the finance ministry said Tuesday.
The figure missed the government's target of EUR9.07
billion.
According to the finance ministry's statement, net ordinary
budget revenue for the five month period totaled EUR18.36 billion,
down 7.1% from EUR19.76 billion in the same period of 2010 and a
target of EUR20.52 billion.
Ordinary budget outlays between January and May were up 6.4% to
EUR27.59 billion, from EUR25.94 billion, and slightly above a
target of EUR26.58 billion.
The Greek state budget is made up of two parts, the ordinary
budget--which relates to central government operations--and a
separate investment budget for large public-works projects.
According to the statement, outlays for public investment
projects fell sharply, down 47.3% in the five months to EUR1.7
billion, against a target of EUR3.45 billion.
In May 2010, Greece narrowly avoided default with the help of a
EUR110 billion bailout from the European Union and International
Monetary Fund in exchange for measures to bring down its budget
deficit from 15.4% of gross domestic product in 2009, to below 3%
of GDP by 2014.
In 2011, Greece is aiming for a budget deficit equal to 7.4% of
its GDP, or EUR17.0 billion. Net ordinary budget revenues are seen
at EUR55.56 billion, and ordinary budget spending at EUR70.79
billion.
The state budget reflects only Greece's central government
operations. It doesn't include general government accounts--which
comprise local government and social security fund accounts; an
added portion of military spending; and some additional national
accounts.
-By Costas Paris, Dow Jones Newswires; +30 69 7232 8829;
costas.paris@dowjones.com