Greek budget deficit down sharply in first half 2013

The Greek state budget deficit fell to 4.991 billion euros in the first six months of 2013, from 12.477 billion euros in the same period last year and down from a budget target for a deficit of 7.194 billion euros, the finance ministry said yesterday.

In a report, the ministry said that the budget’s primary deficit was 1.511 billion euros, in the January-June period, down significantly from a primary deficit of 3.316 billion euros last year and a budget target for a shortfall of 3.877 billion euros.

According to AMNA, the finance ministry said that state budget net revenues totaled 22.572 billion euros in the six-month period, down 3.6 pct from budget tagets, while net revenues of the regular budget was 20.842 billion euros, down 4.1 pct from targets.

The report said that income tax proceeds were down by 39.1 pct compared with budget targets in June, because of an extension given to deadlines for tax income statements. Direct tax proceeds were down 39.2 pct, while consumption taxes fell short by 18.9 pct. Non-regular revenues fell 64.7 pct reflecting a delay in collecting a special tax on financial institutions and a 3.0 pct decline in VAT proceeds. On the other hand, tax collection surpassed budget targets in property taxes (+17.5 pct) in June.

The finance ministry said that state budget spending totaled 27.564 billion euros, down by 3.053 billion euros compared with budget targets. Regular budget spending totaled 25.792 billion euros, down by 1.975 billion euros compared with budget targets. Regular budget spending was down by 23.3 pct compared with 2012, reflecting an 11.5 pct fall in primary spending and a 62 pct drop in interest payments.

Source: capital.gr