Creditors Reportedly Find 2-3 Billion Euro Gap in 2016 Greek Budget

tsakalotos.15.11.708The Greek parliament voted the 2016 Greek budget less than two weeks ago. However, this might not be the country’s final budget with the new year less than two weeks away.

Greek TV channel Mega reports that Greece’s creditors foresee that the budget will fall short by two to three billion euros. This amounts to around a 1.1%-1.7% of the real Greek GDP, which the budget expects to be 174.4 billion euros by the end of 2016.

As a result of the shortage, creditors will ask for an additional budget that will fill this void, Mega reports.

Among the adopted budget‘s deficiencies, according to creditors, is that expected revenues from VAT and electronic gambling taxation have been over-appreciated.

The Greek Finance Ministry had also revised its previous estimation and claimed that 2015 will not end with a reduction in GDP. Instead the economy will have remained stagnant without a change in economic growth. Creditors reportedly find this to be optimistic and expect a 0.5% reduction in Greek GDP by the end of the year.

Looking into the future, creditors believe that in 2018 new austerity measures worth six to seven billion euros will have to be implemented.