Greece Misses Budget Revenue Target for Two First Months of 2015


Greece missed its budget revenue target during the first two months of 2015, complicating the talks with its international creditors over securing more bailout funds for its economic recovery, according to the country’s Finance Ministry data. Political uncertainty has weighed on revenue, but less than previously expected, as income reached 7.79 billion euros, which is 963 million euros, or 11% short of target.

In the past three years, Athens has managed to achieve its fiscal goals set in accordance with its international creditors in exchange for bailout assistance worth 240 billion euros. This has been achieved, though, by slashing spending -including pensions and salary cuts-, while significantly boosting taxation.

It seems that the latest bout of political instability that has shaken Greece has also affected its economic recovery and hurt tax collection, even though the revenue shortfall is similar to the one recorded in January. The deficit also came in a bit higher than expected, as according to the Greek Finance Ministry, the shortfall reached 189 million euros, compared to the target of just 70 million euros. Similarly, the Ministry figures reveal that the primary budget surplus also came below the target of 1.41 billion euros, to 1.24 billion.

It should be noted that the state budget only takes into account the operations of the central government and does not include general government accounts, comprised of local government, part of military spending and social welfare spending.