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SYRIZA’s governing brings a black hole of 4 billion euro

26 August 2015 / 18:08:10  GRReporter
1116 reads

The data of the Ministry of Finance for the period January-July 2015 show a total mismatch with the state budget for 2015.

The black hole in the revenue exceeded the amount of 4 billion euro whereas the suspension of all payments by the state and the capital controls represented an unreal control over expenditure amounting to 4.5 billion euro.

In particular, the Greek Ministry of Finance announces that net revenue in the state budget amounted to 26.874 billion euro, 3.942 billion euro (12.8%) lower than the target.

The net ordinary budget revenue amounted to 24.839 billion euro, 4.097 billion euro less than the target.

According to the Ministry the discrepancies are due to the following:

- Extended deadline for the submission of tax returns and for the payment of the first instalment of the income tax for individuals.

- Extended deadline for the submission of tax returns and for the payment of the first instalment of the income tax for legal entities.

- The failure to determine and pay the first instalment of the property tax for 2015.

- The failure to obtain the revenue from the Greek government bonds held by the central banks of the Eurosystem (ANFAs and SMPs) worth 1.724 billion euro.

Revenue growth amounted to 1.546 billion euro, 318 million less than the target. The revenues from the Public Investment Programme were to the amount of 2.035 billion euro, exceeding the target with 155 million euro.

According to the final data for July 2015, the total net revenues of the state budget amounted to 5.046 billion euro, being 3.044 billion euro (38%) lower than the target for the month.

Ordinary budget net revenues amounted to 5.039 billion euro or 2.441 billion euro (33%) less than the target for the month.

The Ministry notes that, according to the final data, the net revenue of the state budget (mainly tax revenues) in July increased by 185 million euro compared to the preliminary data.

Moreover, the data presented by the Ministry show a significantly lower revenue in July, when the referendum took place and capital controls were imposed, due to the following collection problems:

- 448 million euro  less collected from income tax for individuals,

- 671 million euro less from property tax,

- 152 million euro less from all other direct taxes,

- 62 million euro less from VAT on petroleum products,

- 33 million euro less from all other taxes on financial transactions,

- 72 million euro less from other non-tax revenues.

An increase was recorded in:

- income tax for legal entities - 381 million euro

- VAT on other goods - 6 million euro

Revenue growth amounted to 215 million euro, 197 million euro less than the target of 412 million euro.

State budget expenditures during the same period amounted to 27.714 billion euro, 4.477 billion euro less than the target.

The communication of the Ministry of Finance states that "the regular budget expenditure amounted to 26.516 billion euro. It was 3.104 billion euro lower than the target primarily because of the reduction in primary expenditure by 2.883 billion euro, the cost of weapon systems by 358 million euro and the activation of guarantees to the amount of 81 million euro.

The regular budget expenditure decreased by 1.785 billion euro (6.3%) compared to the same period last year despite the granting of an additional 39 million euro for doctors on duty from the National Health System, 50 million euro for agricultural allowances, 41 million euro for financial revenue to the EU and 16 million euro as exceptional financial assistance for the suppression of the humanitarian crisis."

Tags: EconomyBudgetBlack hole in government revenuesSuspension of paymentsCapital controls
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