Trade with Greece
27
(It should be noted, though, that these figures
are presented on a cash basis, since the gov-
ernment expects significant PIB revenues by the
end of February, from the applications for pay-
ment that were submitted on December 31st.)
● A
€
355 million reduction in expenses, resulting
both from primary revenues and the under-
funding of the PIB by
€
736 million.
● A government budget deficit reduced to
€
15.9
billion (8.2% of GDP), from
€
22.8 billion in 2011
(10.9% of GDP), i.e. a 30% year-on-year
reduction. The target for the 2012 budget
deficit had been set at
€
16.3 billion (8.4% of
revenues).
The revenue surprise
The fact that ordinary budget revenues reached
€
48,116 million, 0.9% or
€
410 million above the
target set for 2012 (
€
47,706 million), is due,
according to official data from the government’s
financial staff, to larger-than-expected revenues
from:
a)
income taxation (by
€
355 million);
b)
property taxes (by
€
170 million);
c)
other direct taxes (by
€
59 million);
d)
motor vehicle taxes (by
€
55 million);
e)
non-tax revenues (by
€
32 million);
as well as a reduction in tax rebates that exceeded
the revised target by
€
366 million.
Privatizations and constantly
postponed targets
The privatization process had been, from the very
beginning, one of the major bets of both the gov-
ernment and the troika. Not only because of the
revenues the Greek state is expected to generate
from the sale of its assets, but also because of the
fact that the first big-ticket privatization deal will
send the coveted signal for the further inflow of
foreign investment.
The ambitious
€
50 billion target that had been
announced by the troika in February 2011 has
now been seriously revised downwards and –at
least this year– the government expects to collect
about
€
2.6 billion, without, actually, having taken
any serious action on this issue during the past
two years.
The sales of the state lottery and the International
Broadcasting Centre to the Greek Organization of
Football Prognostics (OPAP) and Lamda
Development respectively, are, undoubtedly, of
lesser importance in comparison to the major
deals that await completion, such as the sales of
OPAP itself, the Public Gas Corporation (DEPA),
Hellenic Petroleum and the site of the former air-
port at Elliniko, in the southern suburbs of Athens.
Recently, the Board of Directors of the Hellenic
Republic Asset Development Fund (HRADF) has
been meeting every week, albeit without taking
The fact that
ordinary budget
revenues reached
€
48,116 million, 0.9% or
€
410 million above the
target set for 2012
(
€
47,706 million), is due,
according to official
data from the
government’s financial
staff, to larger-than-
expected revenues
”
“
