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The 2009 budget deficit reached 15.5 per cent of GDP

10 November 2010 / 15:11:18  GRReporter
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Greece's budget deficit for 2009 is 15.5 per cent of GDP, Reuters reported citing an anonymous source from the Greek Ministry of Finance. This means that the budget deficit for 2010 will be between 9.2% and 9.3% of GDP, which is far off the initial plans of the socialist government. George Papandreou’ government aimed at reducing this year’s deficit to 7.8 per cent of GDP through cuts in budget expenditures, state employees salaries and pensions, and through increasing taxes and excise duties and a bunch of other stringent economic measures. The difference between the desired and actual level of the rate is the result of two factors - the weak growth in tax revenues and the restatement of the budget deficit for the period ending 2009.

"This year’s deficit will be revised upwards to levels of around 9.2 and 9.3 per cent of GDP. Data are not completed yet and there could be minor changes," the news agency quoted its source. "We expect the 2009 budget deficit would reach about 15.5 per cent of GDP after Eurostat’s revision and a deviation within the 0.1- 0.2 per cent range is possible," the statement said. The data preceding the latest Eurostat revision (which is still running) showed that the deficit of Greece is 13.7 percent of GDP and its external debt is about 115% of GDP. Based on this, the government prepared an action plan to shockingly reduce the deficit by about 5 per cent by the end of 2010. The initial data reassessment is expected to inevitably lead to fiscal consolidation measures rearrangement and Greece will face a year even harder than 2010.

The European Statistical Office should submit its final report on the levels of the Greek deficit for the last year on Monday, November 15. GRReporter has contacted the press office of the Ministry of Finance to confirm the information but they declined to comment before Eurostat formally announces the level of the 2009 deficit.

 

Tags: EconomyCrisisGreek deficitEurostatBudgetAdditional measures
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