Greek budget primary surplus doubled in January

The Greek state budget recorded an almost double primary surplus in January this year, compared with the same period last year, Finance Alternate Minister Christos Staikouras said.

According to the provisional data, the primary surplus was 811 million euros, or 0.5 pct of GDP in January, from 415 million euros or 0.2 pct of GDP in January last year. The primary surplus could be 50 pct higher if tax returns and Public Investment Program΄s spending had met budget targets.

The fiscal result was also positive in January, with the state budget surplus totaling 595 million euros, or 0.3 pct of GDP, from 177 million euros or 0.1 pct of GDP in January 2013. Net budget revenue was around last year΄s levels, but fell short of budget targets. Net state and regular budget revenue was around 4.4 billion euros in January, almost unchanged from January 2013. Pre-tax return revenues totaled 4.7 billion euros, up by 270 million euros from January last year, reflecting higher tax proceeds. Tax returns surpassed budget targets to 294 million euros, from 43 million euros in January last year and a budget target of 99 million euros.

Primary budget spending totaled 2.9 billion euros, around 1.0 billion euros less than January 2013 and around 400 million euros less from budget targets. The state΄s overdue debt fell to 4.7 billion euros in December 2013, from 9.2 billion euros a year earlier, a decline of 50 pct. Public Investment Programe spending rose significantly to 308 million euros, from 67 million euros in January 2013. Public Investment Program spending totaled 6.65 billion euros in 2013, up by 540 million euros compared with 2012.

The primary result of the general government does not include a retrospective reduction of interest for loans received from the European Union, the transfer of Greek bond returns from European central banks and the impact from supporting domestic financial institutions. Staikouras said that according to an Economic Policy Program, assessed by the troika, the primary surplus of 2013 could be higher than 812 million euros, or 0.4 pct of GDP. He noted that Greece was surpassing its fiscal targets for the second consecutive year and predicted that a primary surplus will reach 3.9 billion euros, or 2.1 pct of GDP.

Source: capital.gr