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Complete collapse of the budget

13 August 2015 / 18:08:51  GRReporter
1403 reads

A 'black hole' of €4.2 billion in Greek budget revenues was reported for January-July 2015. Simultaneously, the full suspension of payments by the government is reflected in a spending retention worth €4.4 billion from the beginning of the year until the end of July.

Despite the fact that for the first seven months of the year the state budget presents a primary surplus of €3.5 billion against the planned €3 billion, there is no doubt it has reached a complete collapse. And this was the reason why the government and the creditors have changed the already revised 2015 target to a primary deficit of 0.25% of GDP instead of a primary surplus of 1% – against an initial target of a 3% surplus.

According to the Treasury, failing to meet the targets for January-July 2015 is due to the following factors:

Α) the extension of the deadline for filing tax returns and payment of the first income tax instalment by individuals;

B) the extension of the deadline for tax returns and payment of corporate tax instalments by legal entities;

C) non-payment of the 2015 single property tax first instalment;

D) the transfer of profits from Greek government bonds (ANFAs & SMPs), amounting to €1,724,000, to the portfolios of Eurosystem central banks.

The return of revenues amounting to €1.546 billion, down by €318 million against the planned €1.863 billion.

Tags: State budget collapse budget revenues black hole costs creditors
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