Greece Posts 2.9B Surplus

Deciding not to pay creditors in full and delaying tax returns to individuals and businesses, Greece posted a primary surplus – not counting interest due either – in the first eight months of the year, Finance Ministry data showed on Sept. 10.
That means the government of Prime Minister Antonis Samaras, the New Democracy Conservative leader,  remains on track to meet its fiscal target under the terms of its bailout with the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB).
The data indicates Greece could finish the year with a budget surplus if it keeps postponing paying its bills so that the debits don’t show up. It would be the first time in a decade the government has reached the benchmark as it tries to struggle out of a six-year recession and crushing economic crisis.
Samaras was hoping to convince the Troika to allow Greece not to pay back all its $325 billion in two bailouts if he could show a primary surplus, although the lenders have stipulated they won’t allow it. The IMF wants the EU and ECB, however, to allow Greece to write off some of its debt to them but not to the IMF, which wants payment in full.
The Greek crisis has been making some people very rich, particularly the lenders, speculators and Germany, the biggest contributor to the rescue packages but only after Chancellor Angela Merkel insisted on tough austerity conditions.
The finance ministry said the primary budget surplus for the January to August period was 2.9 billion euros ($3.84 billion,) turning around a steep deficit of 1.4 billion euros ($1.85 billioin) in the corresponding period a year earlier. The surplus was 1.5 billion euros ($1.98 billion) excluding one-off revenues from European central banks, Deputy Finance Minister Christos Staikouras said.
Budget spending fell to 37.4 billion euros ($49.55 billion) in the first eight months of 2013 from 45.6 billion ($60.4 billion) the same period last year. On the revenue side, income rose to 34.9 billion euros ($46.23 billion)  from 33.1 billion ($43.84 billion) previously. The surplus also included once-off revenue of 1.5 billion ($1.98 billion) from the transfer of revenue on Greek bonds held by Eurozone central banks
The state budget only takes into account the operations of Greece’s central government, and doesn’t include general government accounts, which comprise local government and a portion of military spending, and some additional national accounts such as social security, otherwise the surplus would be a sizeable deficit.
Samaras said that the achievement of a primary surplus would allow the government to increase social spending on those who have been hit hardest by Greece’s austerity program, including low-income retirees, large families and uniformed personnel.