Greek fiscal deficit down 30 pct in Jan-Oct

Greece’s net regular budget revenues rose 3.7 pct in the January-October period, compared with the same period in 2009, slightly up from a 3.6 pct rise in the nine-month period this year, the Finance ministry said on Wednesday.

 

This development mainly reflected a large recovery in VAT revenues, as a result of higher VAT rates and efforts to combat tax-evasion, while a negative impact on revenues had lower receipts from other taxes. However, the ministry expects tax revenues to rise in the last two months of 2010.

The fiscal deficit fell to 17.405 billion euros in the 10-month period, down from 24.833 billion euros in 2009, for a decline of around 30 pct down from a 32 pct target envisaged by an updated economic policy program. The annual target for the year envisages a decline of 36.9 pct.

Regular budget spending were down 7.0 pct in the January-October period, with primary spending down 11 pct -surpassing an annual target of a 9.2 pct decline, while interest payments rose by 5.5 pct, down from an annual target of a 7.2 pct rise.

Spending by a Public Investment Program were down 24.6 pct, while revenues were down 3.3 pct compared with 2009.