Bloomberg News

Greek Five-Month State Budget Deficit Widens, Beats Targets

June 12, 2012

Greece’s state budget deficit in the first five months beat targets set under the country’s loan accords with the European Union and the International Monetary Fund, even as it widened compared with the same period of 2011.

The shortfall, which excludes spending by state-owned institutions and companies, was 10.9 billion euros ($13.6 billion) compared with a target of 12.9 billion euros, according to an e-mailed statement from the Athens-based Finance Ministry. The January-through-May deficit in 2011 was 10.4 billion euros, the ministry said.

Greece is preparing for a second national election in six weeks on June 17, a vote that may determine whether the country stays in the 17-nation euro area. An inconclusive ballot on May 6 showed gains for parties, led by Syriza, that oppose terms of the country’s bailouts.

Ordinary budget revenue was 18.2 billion euros, compared with a target of 18.8 billion euros, while ordinary spending was 29.2 billion euros versus a target of 30.8 billion euros, the ministry said.

The primary deficit, which excludes interest payments, was 2.4 billion euros, down from 4.6 billion euros in the same period in 2011. The target was 4.2 billion euros.

To contact the reporter on this story: Marcus Bensasson in Athens at mbensasson@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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