Greece: Government presents 2011 budget draft
October 27, 2010
On 4 October, the government presented the draft 2011 budget, which projects a fiscal deficit of 7.0% of GDP for next year. The projection is well below the 7.6% target set in the Economic Policy Programme, which aims at bringing the budget deficit to under 3.0% of GDP by 2014. In 2010, the deficit is estimated to reach 7.8% of GDP, lower than the 8.1% of GDP projected in the programme. The budget reflects a 5.9% decline in overall expenditure and a 6.9% increase in revenues. The fiscal adjustments include reductions in public investment, as well as savings from wage cuts in the public sector. That said, additional revenues are expected to come from the VAT increase, which was implemented in July this year, as well as from taxes on property and a special levy on profitable enterprises. Meanwhile, Eurostat, in cooperation with the Greek Statistical Office and the Greek Court of Auditors, is assessing the quality of public accounts data, thus delaying the revision of Greek budget deficit figures for 2006-2009 until 15 November. The budget deficit figure is expected to be revised up from 13.6% of GDP initially reported to 15.5% of GDP.