Bloomberg News

Greek 10-Month Budget Deficit Widens to 20.1 Billion Euros

November 16, 2011

(Adds spending and revenue breakdown in fourth paragraph.)

Nov. 16 (Bloomberg) -- Greece’s state budget deficit in the first 10 months of the year widened 11 percent, meeting a revised target for the period.

The shortfall, which excludes outlays by state-owned institutions and companies, rose to 20.1 billion euros ($27.2 billion) from 18.1 billion euros a year earlier, according to preliminary figures received by e-mail from the Finance Ministry in Athens. The figure is in line with a target of 20.4 billion euros, it said. Final figures are due later in the month.

Ordinary budget revenue in the period declined 4.1 percent as the country’s recession weighed on tax collection and tax inspectors held a series of strikes against the government’s economic policies. Corrective measures included in a new five- year fiscal plan passed by parliament in June should help make up the shortfall, the statement said.

Spending rose 5.7 percent, or by 3.1 billion euros, boosted by a 19.5 percent increase in debt servicing costs, to 15.2 billion euros, the Finance Ministry said.

--Editors: Rodney Jefferson, Kevin Costelloe

To contact the reporter on this story: Maria Petrakis in Athens at mpetrakis@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net


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