According to the data available for the execution of the State Budget for the twelve months January – December 2011, on a fiscal basis, the deficit amounts to 21,726 million Euros compared to the new target of 21,712 million Euros set in the voted Budget for 2012. During the same period in 2010, the State Budget deficit amounted to 21,457 million Euros.

Total State Budget revenues (Ordinary and Investment Budget) are 910 million Euros below the target, but total expenditures (Ordinary and Public Investment Budget) compensated for this revenue shortfall by amounting to 896 million Euros lower than the target.

Specifically, on a twelve-month basis (January – December 2011), net revenues of the ordinary budget amounted to 49,993 million Euros, declining by 1.7% in comparison to the respective period of 2010. The revenue shortfall can be mainly attributed to lower withholding personal income tax receipts due to the more favourable tax treatment as a result of the new tax law and reduction in taxable income. The shortfall against the new target for the same period can be attributed to delays in the receipt of tax revenue deriving from the strikes, in 29 and 30^th of December, of Tax & Payment Office’s (DOY) employees’, as well as the extension granted for the settlement of tax obligations until January 20^th, 2012. It is noted that the Ordinary Budget revenues amount will be determined after the recording of the revenues collected during the 20 days extension, having expired  on Friday of January 2012.

Revenues from the Public Investment Budget increased by 22.7% or 698 million Euros vis-à-vis the corresponding twelve months of 2010, as well as compared to the target set for year-end 2011, by 405 million Euros.

It should be outlined that this report on the execution of the State Budget provides revenue data for the twelve months of 2011 on a cash basis. However, in line with Eurostat methodology, total annual revenues are measured on a national account basis and include receipts from the first two months of 2012 also. Equivalently, a share of the revenues for the first months of 2011 is included in the calculation on a national accounts basis of total annual 2010 revenues.

Ordinary budget expenditures increased by 1,949 million Euros or 2.9% in the twelve months of 2011 on a year-on-year basis. This is mainly due to a significant increase in interest expenditures of 3,125 million Euros or 23.6% thus far in 2011 relative to 2010.

On the contrary, State Budget primary expenditures (spending excluding interest) declined by 1.2% or 614 million Euros between January-December 2011 on a year-on-year basis, despite the increase in grants of 1,955 million Euros or 12.9% relative to 2010 for social insurance and health.

Meanwhile, in January-December 2011, Public Investment Budget (P.I.B.) expenditures declined by 21.8% or 1,846 million Euros.

Furthermore, it should be noted that the above data correspond to the execution only of the State Budget and thus do not reflect all fiscal data that are taken into account when measuring the General Government deficit according to the ESA95 (Eurostat) classification, which is the benchmark for the assessment of the Economic Adjustment Programme of Greece.

According to the preliminary data available for the execution of the State Budget for the twelve months January – December 2011, on a fiscal basis, the deficit amounts to 21,638 million Euros compared to the new target of 21,712 million Euros set in the voted Budget for 2012. During the same period in 2010, the State Budget deficit amounted to 21,457 million Euros.

Total State Budget revenues (Ordinary and Investment Budget) are 873 million Euros below the target, but total expenditures (Ordinary and Public Investment Budget) compensated for this revenue shortfall by amounting to 947 million Euros lower than the target.

Specifically, on a twelve-month basis (January – December 2011), net revenues of the ordinary budget amounted to 49,993 million Euros, declining by 1.7% in comparison to the respective period of 2010. The revenue shortfall can be mainly attributed to lower withholding personal income tax receipts due to the more favourable tax treatment as a result of the new tax law and reduction in taxable income. The shortfall against the new target for the same period can be attributed to delays in the receipt of tax revenue deriving from the strikes, in 29 and 30^th of December, of Tax & Payment Office’s (DOY) employees’, as well as the extension granted for the settlement of tax obligations until January 20^th, 2012.

Revenues from the Public Investment Budget increased by 23.9% or 735 million Euros vis-à-vis the corresponding twelve months of 2010, as well as compared to the target set for year-end 2011, by 443 million Euros.

It should be noted that this report on the execution of the State Budget provides revenue data for the twelve months of 2011 on a cash basis. However, in line with Eurostat methodology, total annual revenues are measured on a national account basis and include receipts from the first two months of 2012 also. Equivalently, a share of the revenues for the first months of 2011 is included in the calculation on a national accounts basis of total annual 2010 revenues.

Ordinary budget expenditures increased by 1,899 million Euros or 2.8% in the twelve months of 2011 on a year-on-year basis. This is mainly due to a significant increase in interest expenditures of 3,125 million Euros or 23.6% thus far in 2011 relative to 2010.

On the contrary, State Budget primary expenditures (spending excluding interest) declined by 1.3% or 703 million Euros between January-December 2011 on a year-on-year basis, despite the increase in grants of 1,945 million Euros or 12.8% relative to 2010 for social insurance and health.

The main recipients of the increased transfers were:

Social Security Funds with an increase of 1,232 million Euros, (in particular the Wage Earners Fund (IKA) with 1,446 million Euros, the Insurance Fund of the Self Employed (OAEE) with 70 million Euros and the Seamen Pension Fund (NAT) with 24 million Euros) due to shortfall in social security contributions;

The Greek Employment Organization (OAED) with an increase in transfers of 385 million Euros for unemployment benefits;

Hospitals with higher transfers of 558 million Euros (an additional 68 million Euros were disbursed for previous years’ obligations settlement).

Meanwhile, in January-December 2011, Public Investment Budget (P.I.B.) expenditures declined by 21.8% or 1,846 million Euros.

Furthermore, it should be noted that the above data correspond to the execution only of the State Budget and thus do not reflect all fiscal data that are taken into account when measuring the General Government deficit according to the ESA95 (Eurostat) classification, which is the benchmark for the assessment of the Economic Adjustment Programme of Greece.

January – November 2011 (General Government)

January – November 2011 (General Government)

According to the data available for the execution of the State Budget for the eleven months January – November 2011, on a fiscal basis, the deficit amounts to 20,490 million Euros compared to the new target of 21,063 million Euros set in the voted Budget for 2012. During the same period in 2010, the State Budget deficit amounted to 19,516 million Euros.

Total State Budget revenues (Ordinary and Investment Budget) are 165 million Euros below the new target, but total expenditures (Ordinary and Public Investment Budget) compensated for this revenue shortfall by amounting to 738 million Euros lower than the new target.

Specifically, on an eleven-month basis (January – November 2011), net revenues of the ordinary budget amounted to 43,860 million Euros, declining by 3.0% in comparison to the respective period of 2010. The revenue shortfall can be mainly attributed to lower withholding personal income tax receipts due to the more favourable tax treatment as a result of the new tax law and reduction in taxable income, and finally to the increased tax refunds due to the clearing of previous years’ obligations. Moreover, the shortfall against the new target can be attributed to delays in the receipt of tax revenue due to strikes by GSIS employees’ and tax collection officials, as well as the shift of revenue collection by the European Union, for the last month of the year,

Revenues from the Public Investment Budget increased by 81.2% or 1.184 million Euros vis-à-vis the corresponding eleven months of 2010.

It should be noted that this report on the execution of the State Budget provides revenue data for the eleven months of 2011 on a cash basis. However, in line with Eurostat methodology, total annual revenues are measured on a national account basis and include receipts from the first two months of 2012 also. Equivalently, a share of the revenues for the first months of 2011 is included in the calculation on a national accounts basis of total annual 2010 revenues.

Ordinary budget expenditures increased by 3.657 million Euros or 6.2% in the eleven months of 2011 on a year-on-year basis. This is mainly due to a significant increase in interest expenditures of 2,638 million Euros or 20.4% thus far in 2011 relative to 2010.

State Budget primary expenditures (spending excluding interest) increased by 3.0% or 1,339 million Euros between January-November 2011 on a year-on-year basis, reflecting an increase in grants of 2.768 million Euros relative to 2010 for social insurance and health, which exceeded the reduction of 1,429 million Euros in other spending categories.

The main recipients of the increased transfers were:

Social Security Funds with an increase of 1,611 million Euros, (in particular the Wage Earners Fund with 1,583 million Euros, the Insurance Fund of the Self Employed with 100 million Euros and the Seamen Pension Fund with 42 million Euros) due to shortfall in social security contributions;

The Greek Employment Organization (OAED) with an increase in transfers of 410 million Euros for unemployment benefits;

Hospitals with higher transfers of 1.059 million Euros (89 million Euros were disbursed for previous years’ obligations).

Meanwhile, in January-November 2011, Public Investment Budget (P.I.B.) expenditures declined by 40.1% or 2,874 million Euros.

It should be noted that the above data correspond to the execution only of the State Budget and thus do not reflect all fiscal data that are taken into account when measuring the General Government deficit according to the ESA95 (Eurostat) classification, which is the benchmark for the assessment of the Economic Adjustment Programme of Greece.

According to the preliminary data available for the execution of the State Budget for the eleven months January – November 2011, on a fiscal basis, the deficit amounts to 20,516 million Euros compared to the new target of 21,063 million Euros set in the voted Budget for 2012. During the same period in 2010, the State Budget deficit amounted to 19,516 million Euros.

Total State Budget revenues (Ordinary and Investment Budget) are 192 million Euros below the new target, but total expenditures (Ordinary and Public Investment Budget) compensated for this revenue shortfall by amounting to 739 million Euros lower than the new target.

Specifically, on an eleven-month basis (January – November 2011), net revenues of the ordinary budget amounted to 43,833 million Euros, declining by 3.1% in comparison to the respective period of 2010. The revenue shortfall can be mainly attributed to the deeper recession than that projected when the 2011 Budget was prepared (last quarter of 2010), lower withholding personal income tax receipts due to the more favourable tax treatment as a result of the new tax law and reduction in taxable income, and finally to the increased tax refunds due to the clearing of previous years’ obligations.

Revenues from the Public Investment Budget increased by 81.2% or 1.184 million Euros vis-à-vis the corresponding eleven months of 2010.

It should be noted that the current revenue shortfall will be reduced in December as the new tax regulations included in the Medium Term Fiscal Strategy 2011-2015 and voted in July and August 2011 come into full effect.

Furthermore, it should be noted that this report on the execution of the State Budget provides revenue data for the nine months of 2011 on a cash basis. However, in line with Eurostat methodology, total annual revenues are measured on a national account basis and include receipts from the first two months of 2012 also. Equivalently, a share of the revenues for the first months of 2011 is included in the calculation on a national accounts basis of total annual 2010 revenues.

Ordinary budget expenditures increased by 3.657 million Euros or 6.2% in the eleven months of 2011 on a year-on-year basis. This is mainly due to a significant increase in interest expenditures of 2,638 million Euros or 20.4% thus far in 2011 relative to 2010.

State Budget primary expenditures (spending excluding interest) increased by 3.0% or 1,339 million Euros between January-November 2011 on a year-on-year basis, reflecting an increase in grants of 2.768 million Euros relative to 2010 for social insurance and health, which exceeded the reduction of 1,429 million Euros in other spending categories. 

The main recipients of the increased transfers were:

Social Security Funds with an increase of 1,611 million Euros, (in particular the Wage Earners Fund with 1,583 million Euros, the Insurance Fund of the Self Employed with 100 million Euros and the Seamen Pension Fund with 42 million Euros) due to shortfall in social security contributions;

The Greek Employment Organization (OAED) with an increase in transfers of 410 million Euros for unemployment benefits;

Hospitals with higher transfers of 1.059 million Euros (89 million Euros were disbursed for previous years’ obligations).

Meanwhile, in January-November 2011, Public Investment Budget (P.I.B.) expenditures declined by 40.1% or 2,874 million Euros.

It should be noted that the above data correspond to the execution only of the State Budget and thus do not reflect all fiscal data that are taken into account when measuring the General Government deficit according to the ESA95 (Eurostat) classification, which is the benchmark for the assessment of the Economic Adjustment Programme of Greece.

January - October 2011 (General Government)