Greece on Track to Achieve Primary Budget Surplus For Second Year

13/11/2014

ByStelios Bouras

Third Quarter GDP Figures Expected to Show First Economic Expansion Since 2008

Greece has taken a further step in achieving a primary budget surplus for a second straight year, according to data released by the Finance Ministry Thursday.

Greece’s primary budget surplus, which doesn’t take into account interest payments, for the January to October period reached €2.4 billion ($3 billion), amounting to 1.3% of gross domestic product, in line with targets set by the Greek government and its international creditors.

Revenue for the 10 months hit €41 billion, below the €42.9 billion target, due to increased tax returns, the ministry said in a statement. Outlays, or government spending, were lower than expected at €43.7 billion.

Greece has been slashing spending and boosting revenue to tidy up its finances, but its efforts have come at a huge cost for the economy. Greek gross domestic product has contracted some 25% since mid-2008. Third quarter GDP data, scheduled to be unveiled by the country’s statistics office on Friday, is expected to show that the economy expanded for the first time in six years.

The state budget takes into account only the operations of Greece’s central government and doesn’t include general government accounts, which comprise local government and a portion of military spending, as well as data for some state-owned enterprises and pension funds.

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