Greece’s budget deficit in January-April turned out to be larger than planned

The Greek government reported a larger-than-expected primary budget deficit of € 6.21 billion in the first four months of the year, due to lower tax revenues, finance ministry data showed on Monday.

The government is targeting a primary budget deficit, which does not include debt service costs, of € 5.24 billion for the January-April period.

“The budget did not take into account the protracted lockdowns of the first 4 months of 2021, so the deficit was expected and largely limited,” Deputy Finance Minister Teodor Skalakakis said at a briefing.

Greece has extended its restrictions on Covid-19 several times since last year to contain the spread of the pandemic that wreaked havoc on its economy shortly after the country emerged from a decade-long debt crisis.

Data for the first four months of 2021 showed that total budget revenues reached 15.477 million euros, 3% below the government’s target. In April, tax revenues fell by 8% per annum.

The government expects the main budget deficit to be 7% of gross domestic product this year due to financial support provided to mitigate economic losses from the pandemic.

However, the country is forecasting a zero deficit next year, as government support is to be phased out as the economy recovers and funds flow from the European Union’s multibillion-dollar recovery package.

Greece expects its economy to grow 3.6% this year after falling 8.2% last year, with growth to rise to 6.2% in 2022. But the primary data already show the impracticability of these plans.

Source link

High-quality journalistic work cannot be free, otherwise it becomes dependent on the authorities or the oligarchs.
Our site is solely funded by advertising money.
Please disable your ad blocker to continue reading the news.
Best regards, editors