Greece is compressed by 42%

Greece cut the social programs

In brief: Social budget Greece has become a threat to the poor.

Greek Finance Minister George Papaconstantinou said that the country in the first half of this year has reduced the budget deficit by 42%. He expressed hope that Greece will again be able to borrow in financial markets in 2011. This means that the country exceeds the indicators established by the International Monetary Fund and the European Union in terms of 110 billion euro emergency loan this year.

According to the Central Bank of Greece, the state budget deficit in the first half amounted to 11.5 billion euros, compared with 19 billion euros in the same period last year. The deficit in the first half reached 4,9% of GDP in the IMF-mandated limit of 5,8%. The Greek Government has promised to reduce the annual deficit to 8,1% of GDP compared with 13.6% last year. The situation with the initial deficit, the calculation of which does not include the cost of servicing loans and who is the most appropriate measure of financial stability, has changed more radically – it decreased by 56%. Total budgetary expenditures decreased by 15% to 30.1 billion euros, while revenues grew by 7% to 23.2 billion euros. According to the minister of finance, tax revenue decreased due to the continuing recession in Greece and “a little behind” on the set parameters. However PAPACONSTANTINOU named the official government forecast reduction in the Greek GDP by 4% this year “too pessimistic”, stating that in his view, the reduction will be about 3%.

Anrey Torbinski
2010-07-05 22:03, Economics.

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