Despite big tax hikes that went along with big pay cuts and slashed pensions, expected tax revenues in Greece are far off the mark as austerity-crushed Greeks continue to cut back spending, causing a shortfall of 815 million euros ($1.074 billion) in the first six months of the year, some 3.6 percent less than the goal.
The biggest drops were shown in income tax and property tax despite a doubling of the fee. According to data released by the Ministry of Finance, for the semester of January-June 2013, there is a deficit in the state budget of 4.991 million euros ($6.58 billion).
It was 12.477 million euros ($16.44 million) in the same period the year before. The target for the deficit was 7.194 billion euros, about $9.48 billion.
The primary deficit stood at 1.511 million euros ($1.99 million) and it appears importantly decreased in comparison with the primary deficit of 3.316 million euros ($4.37 million) during the same period in 2012 and with the target a primary deficit of 3.877 million euros, or $5.1 million.
The net revenues of the ordinary budget reached 20.842 million euros, 901 million euros or 4.1 percent lower in comparison with the target (21.743 million euros).
The Finance Ministry said that the total deviation in the semester’s revenues, which is mainly due to coincidental factors (e.g. prolongations, strikes), will be covered in the coming months but has said that before without that happening and didn’t explain why it would now.
The expenditure of the state budget stood at 27.564 million euros and appear decreased by 3.053 million euros compared to the target (30.617 million euros).
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