2012 closed with a lower deficit by 1.1 billion

 

This development is inversely proportional to the trend of state revenue. While in 2012, and after continuous revisions of budget targets, the government and the Troika significantly lowered their revenue forecasts, the Finance ministry could not even collect the 52.4 billion euros aimed at for October. It only collected 51.925 billion, nearly 1.8 billion less than in 2011.

 

In particular, the amount of net revenues of the regular budget amounted to 48,325 million euros for January-December 2012, an increase of 1.3% or 619 million against the target of 2012 (47,706 million). The positive divergence against the annual updated target is mainly due to higher-than-expected collection from:

 

-       income tax (by 230 million euros)

-       taxes on property (by 107 million)

-       other direct taxes (by 207 million), mainly due to the special solidarity fee on individuals

-       traffic fees on vehicles (by 55 million)

-       non-tax revenues (by 55 million)

-       reduced tax refunds (by 517 million)

 

But government spending has since received cuts totaling 67,614 million euros for 2012, a decrease of 1,091 million euros against the target (68,705 million).

 

 

"The final figures for the state budget implementation show that Greece achieved its financial goals during 2012," deputy Finance minister Christos Staikouras said in a statement.

 

"The enormous sacrifices of the Greek people seem to bear fruit in this undoubtedly painful process of fiscal consolidation. This adjustment is necessary but not in itself sufficient to exit the crisis.

 

We must make a major effort in our policy and social consensus, understanding and cohesion so that the Greek economy can enter the process of recovery and development because without recovery of the real economy, our further stabilization and adjustment course will be fragile."