Finance Ministry Targets €2.3B Primary Surplus

Filippos Sachinidis

Primary surplus of 1.1% of GDP, around €2.3 billion, and significant reduction in budget deficit are the two main objectives of the 2012 budget.

This is determined by a ministerial order on the execution of the new budget plan, signed by Deputy FinMin Filippos Sachinidis and sent of all departments and agencies of the government.

The circular provides detailed instructions for the budget execution and sets clear limitations on the availability of state funds.

Further, the circular states that:
1) The budget set spending limits and not amounts of funds for spending.
2) The release of all budgeted funds is not guaranteed.
3) Transfers, reassignments of personnel should be made if there are appropriations of funds to the “new” department.
4) All public organizations should adopt mechanism to ensure monthly progress tracking of budget execution.
5) They should also seek to monitor expenditure and avoid accumulation of arrears.
6) All public services, which identify debts to the state, should inform the competent tax office.

(source: capital)