The monthly trajectory of the deficit reduction continues to outpace the Economic Policy Program projections. The state budget deficit for first nine months of the year (January- September 2010) was reduced by 31.1% compared to the same period in 2009, against a targeted 26.9% reduction for the period (or a targeted 29% reduction for the period based on August’s updated projections in the context of the Economic Policy Programme).

According to the preliminary data available for the state budget execution for the nine months of 2010 (January – September 2010), on a fiscal basis, the deficit was reduced to 16,234 million euro compared to 23,579 million euro during the same period in 2009.

Net revenues of the ordinary budget increased by 3.7% in reference to the same period of the previous year; improved comparing to last months mainly due to an almost 17% increase of the VAT receipts in September compared to September 2009.

Ordinary budget expenditures during the same time period declined by 7.1% year-over-year. In particular, primary expenditures decreased by 11.6% and interest expenditures increased by 8%.

Public Investment Budget (PIB) expenditures declined by 30.3% and PIB revenues by 3.3%, compared to the same period in 2009.

The monthly trajectory of the deficit reduction continues to outpace the Economic Policy Program projections. The state budget deficit for first eight months of the year (January- August 2010) was reduced by 32.3% compared to the same period in 2009, against a targeted 26.5% reduction for the period. (39.5% targeted annual decline)

According to data available for the state budget execution for the eight months of 2010 (January – August 2010), on a fiscal basis, the deficit was reduced to 14,485 million euro compared to 21,382 million euro during the same period in 2009.

The deficit reduction is characterized by the accumulation of interest payments in July and August 2010, which make up 40% of yearly interest payment- as well as by a lag in revenues.

In particular, net revenues of the ordinary budget increased by 3.4% in reference to the same period of the previous year, against a targeted 13.7% annual increase. This development has been achieved prior to the full attribution of the fiscal measures introduced, such as the increase of VAT by two (2) percentage points, applicable since July 1st 2010.

Ordinary budget expenditures during the same time period declined by 7.6% year-over-year against a targeted 5.5% annual decrease. In particular, primary expenditures decreased by 12.1% against an annual target of a 5.8% annual decline and interest expenditures increased by 6.6% against a projected 5.6% annual increase. The decrease of primary expenditures is mainly due to the restriction of expenditure in health and social security (lower grants to the Social Security Funds by 1,406 million euro compared to the respective period of 2009), a 1,008 million euro reduction in operational and other expenditures and reduced expenditure for salaries and pensions (decreased by 1,041 million euro).

Public Investment Budget (PIB) expenditures declined by 32.8% and PIB revenues by 2.7%, compared to the same period in 2009.

According to the preliminary data available for the state budget implementation for the first eight months of 2010 (January - August), on a fiscal basis the deficit amounted to 14,493 million euro, versus 21,382 million euro during the same period of 2009 and consequently declined by 32.2%, against a targeted 39.5% annual decline foreseen in the economic policy program.

The monthly trajectory of the deficit reduction continues to outpace the Economic Policy Programme projections, which, for the period January – August 2010 projected a 26.5% reduction. The deficit reduction has temporarily slowed down in the past two months due to the accumulation of interest payments in July and August – which make up 40% of yearly interest payments – but also because of a lag in revenues.

 In particular, net revenues of the ordinary budget increased by 3.3%, in reference to the same period of the previous year, against a targeted 13.7% annual increase.

 Ordinary budget expenditures during the same time period declined by 7.7% against a targeted 5.5% annual decline. In particular, primary expenditures decreased by 12.0% against an annual target of a 5.8% decline and interest expenditures increased by 6.6% against an annual target of a 5.6% increase.

 Public Investment Budget (PIB) expenditures declined by 32.8%, whereas PIB revenues decreased by 1.9%, compared to the same period of 2009.

According to the data available for the state budget for the seven months of 2010 (January - July), on a fiscal basis, the deficit amounted to 12,100 million euro against 20,050 million euro during the same period in 2009. This represents a 39.7% year-over-year decline, against a targeted 39.5% annual decline foreseen in the Government’s economic policy programme.

The fiscal consolidation of the first six months of 2010 is due both to expenditure restrictions and revenues increases. Furthermore, these data do not yet fully reflect all fiscal measures included in the Government’s programme for 2010, such as the second increase in VAT rate by 2 percentage points applied since July 1, 2010.

The decline in the percentage reduction in the deficit from 45.4% in the first six months of 2010, to 39,7% for the seven months (January-July 2010) can be traced to a substantial increase of interest expenditures in July as well as to revenue increases lagging behind the target.

In particular, net revenues of the ordinary budget increased by 4.1% year-over-year. This reflects an increase in receipts from the revenue increasing measures adopted by the Government, including the first increase of the VAT rates, and receipts from excise tax and corresponding VAT on fuel, tobacco and alcoholic beverages due to the adjustment of their tax rates. It also reflects receipts of 805 million euro from the imposition of an extraordinary tax on profits of large companies, receipts of 327 million euro from the banks’ liquidity support scheme, as well as a 116 million euro year-over-year reduction in tax refunds.

Ordinary budget expenditures declined by 10.0% year-over-year against a targeted 5.5% annual decrease. Primary expenditures declined by 13.2% against a targeted 5.8% annual reduction and interest expenditures decreased by 0.2% against a projected 5.6% annual increase.

The decrease of primary expenditures is mainly due to the restriction of expenditure in health and social security (lower grants to the Social Security Funds by 1,326 million euro compared to the respective period of 2009), a 890 million euro reduction in grants and consumption expenditures, a 700 million euro reduction in the allocation of earmarked revenues and reduced expenditure for salaries and pensions (decreased by 775 million euro).

Public Investment Budget (PIB) expenditures declined by 36.3% and PIB revenues increased by 23.8%, compared to the respective period of 2009.

According to the preliminary data available for the state budget implementation for the first seven months of 2010 (January - July), on a fiscal basis the deficit amounted to 12,097 million euro, versus 20,050 million euro during the same period of 2009 and consequently declined by 39.7%, against a targeted 39.5% annual decline foreseen in the economic policy programme.

The fiscal result of the seven months of 2010 is due to both a restriction of expenditures and increased revenues, and has been accomplished before the full attribution of the additional measures instituted on March and May, 2010.

The decline in the percentage reduction in the deficit from 45.4% in the first six months of 2010, to 39,7% for the seven months (January-July 2010) can be traced to ordinary revenue increases slightly lagging behind the target as well as to a substantial increase of interest expenditures in July.

In particular, net revenues of the ordinary budget increased by 4.1%, in reference to the same period of the previous year, against a targeted 13.7% annual increase.

Ordinary budget expenditures during the same time period declined by 10.0% against a targeted 5.5% annual decline. In particular, primary expenditures decreased by 12.6% against an annual target of a 5.8% decline and interest expenditures decreased by 0.2% against an annual target of a 5.6% increase.

Public Investment Budget (PIB) expenditures declined by 36.3%, whereas PIB revenues increased by 23.5%, compared to the same period of 2009.

According to data available for the state budget for the first six months of 2010 (January - June), on a fiscal basis, the deficit amounted to 9,754 million euro against 17,866 million euro during the same period in 2009. This represents a 45.4% year-over-year decline, against a targeted 39.5% annual decline foreseen in the Government’s economic policy program.

The fiscal consolidation of the first six months of 2010 is due both to expenditure restrictions and revenues increases. Furthermore, these data do not yet fully reflect all fiscal measures included in the Government’s program for 2010, such as the second increase in VAT rate by 2 percentage points applied since July 1, 2010.

In particular, net revenues of the ordinary budget increased by 7.2% year-over-year against an annual target set for an increase of 13.7%. This reflects receipts of 789 million € from the imposition of an extraordinary tax on profits of large companies, an increase in receipts from the excise tax and corresponding VAT on fuel, tobacco and alcoholic beverages due to the adjustment of their tax rates, receipts of 275 million € from the banks’ liquidity support scheme, as well as a 181 million € year-over-year reduction in tax refunds.

Ordinary budget expenditures declined by 12.5% year-over-year against a targeted 5.5% annual decrease. Primary expenditures declined by 12.3% against a targeted 5.8% annual reduction and interest expenditures decreased by 13.3% against a projected 5.6% annual increase.

The decrease of primary expenditures is mainly due to the restriction of expenditure in health and social security (lower grants to the Social Security Funds by 1,379 million euro compared to the respective period of 2009), a 1,066 million euro reduction in operational and other expenses, such as grants and consumption expenditures, a 769 million euro reduction in the allocation of earmarked revenues and reduced expenditure for salaries and pensions (decreased by 374 million €).

Public Investment Budget (PIB) expenditures declined by 39.8% and PIB revenues decreased by 40.0%, compared to the respective period of 2009.

According to the preliminary data available for the state budget implementation for the first six months of 2010 (January - June), on a fiscal basis the deficit amounted to 9,645 million euro, versus 17.866 million euro during the same period of 2009. This represents a 46.0% year-over-year decline against a targeted 39.5% in the Government’s economic policy programme.

The fiscal result of the first six months of 2010 is due to both restriction of expenditures and revenue increases. Furthermore, these do not yet fully reflect all fiscal measures included in the Government’s programme for 2010.

In particular, net revenues of the ordinary budget increased by 7.2%, in reference to the same period of previous year, against an annual target set   for an increase of 13.7%.

Ordinary budget expenditures declined by 12.8% year-over-year against a targeted 5.5%reduction. In particular, primary expenditures decreased by 12.7% against a targeted 5.4% annual decrease. Interest expenditures decreased by 13.3% against an estimated 5.6% increase.

Public Investment Budget (PIB) expenditures declined by 39.8%, whereas PIB revenues decreased by 40.2%, compared to the same period of 2009.