A gap of €3 billion is revealed in the execution of the state budget in the first ten months of 2011, mainly due to the large shortfall in revenue and excess of expenditure.
The gap is estimated according to the downwards revised provisions of revenue. Based on initial forecasts, the gap exceeds €5 billion.
Specifically, on a ten-month basis (January – October 2011), net revenues of the ordinary budget amounted to €39,271 million, declining by 4.0% in comparison to the respective period of 2010. The revenue shortfall can be mainly attributed to the deeper recession and associated reduction in taxable income relative to forecasts at the time of preparation of the 2011 Budget (last quarter of 2010), lower withholding personal income tax receipts due to the more favorable tax treatment legislated with the new tax law, and finally, increased tax refunds due to the clearing of previous years’ obligations. Moreover, there have been delays in the receipt of tax revenue due to strikes by tax collection officials and of certain licensing and royalties revenue by the State, which have been shifted to the last two months of the year.
(source: capital)
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