11/02/2015 06:03
The fiscal balance recorded a surplus of € 68 million in 2014 versus € 844 million deficit in 2013, despite the unfavorable macroeconomic environment.
New figures announced by the Ministry of Finance show that the budget balance improved by € 911,6 million compared to last year due to increased revenues and reduced costs.
The fiscal balance recorded a surplus of € 68,1 m or 0.39% of GDP against a deficit of € 843,6 m or 4.66% last year 2013.
The improvement in the budget balance exceeded estimates of the Ministry of Finance that this year's deficit would amount to 2.5% of GDP. Despite the economic downturn state revenues improved significantly recording an increase of 3.8% or €238,6 m reaching € 6529,1 million from € 6290,5 million.
Tax revenues increased by € 215,7 million while € 115,3 million came from indirect taxes, € 42,7 m from direct taxes and €57,6 m where contributions to the SSF.
VAT revenues increased by € 84,5 m while non-tax revenues increased by € 22,9 million.
Cost cutting contributed significantly to the improvement of the fiscal balance.
Public spending fell by9.6% or € 702,4 million to € 6593,0 million from € 7295,4 m in 2013.
Current transfers recorded a fall of € 345,2 million while spending on debt service fell by € 107,2 m. The decrease in current transfers is largely due to the 2013 extraordinary expenses for compensation of provident funds.
Spending on salaries also decreased by € 71,8 million while expenditure on purchases of goods and services fell by € 55,9 m.
The primary surplus, that is surplus without the cost of debt servicing, amounted to € 534,4 m compared to a deficit of € 270 m in 2013.
According to the program’s fiscal targets, this year the primary fiscal deficit should be reduced to € 210 million or 1.3% of GDP.
Troika’s estimate after the fifth evaluation of the program was that the deficit would reach 4.7% of GDP, while IMF’s October forecast referred to a deficit of 4.4% of GDP.
New figures announced by the Ministry of Finance show that the budget balance improved by € 911,6 million compared to last year due to increased revenues and reduced costs.
The fiscal balance recorded a surplus of € 68,1 m or 0.39% of GDP against a deficit of € 843,6 m or 4.66% last year 2013.
The improvement in the budget balance exceeded estimates of the Ministry of Finance that this year's deficit would amount to 2.5% of GDP. Despite the economic downturn state revenues improved significantly recording an increase of 3.8% or €238,6 m reaching € 6529,1 million from € 6290,5 million.
Tax revenues increased by € 215,7 million while € 115,3 million came from indirect taxes, € 42,7 m from direct taxes and €57,6 m where contributions to the SSF.
VAT revenues increased by € 84,5 m while non-tax revenues increased by € 22,9 million.
Cost cutting contributed significantly to the improvement of the fiscal balance.
Public spending fell by9.6% or € 702,4 million to € 6593,0 million from € 7295,4 m in 2013.
Current transfers recorded a fall of € 345,2 million while spending on debt service fell by € 107,2 m. The decrease in current transfers is largely due to the 2013 extraordinary expenses for compensation of provident funds.
Spending on salaries also decreased by € 71,8 million while expenditure on purchases of goods and services fell by € 55,9 m.
The primary surplus, that is surplus without the cost of debt servicing, amounted to € 534,4 m compared to a deficit of € 270 m in 2013.
According to the program’s fiscal targets, this year the primary fiscal deficit should be reduced to € 210 million or 1.3% of GDP.
Troika’s estimate after the fifth evaluation of the program was that the deficit would reach 4.7% of GDP, while IMF’s October forecast referred to a deficit of 4.4% of GDP.