• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
Loading...
See More

Painful austerity bites into Greek budget

Apr 23 2012 13:10 Reuters

Related Articles

Greek parliament approves bailout

Threat of Greek default fades

Lagarde thanks private sector

Greek bond swap success lifts rescue hopes

Eurozone to sign off Greek cash, grill Spain

 
Athens - Battered Greece saw its budget deficit fall to 9.1% of gross output last year as severe austerity required to secure international aid bit into spending.

Athens managed a 1.2% point fiscal improvement compared with 2010, but its primary budget balance - which excludes debt servicing costs - has yet to move into surplus as a deep economic slump continues.

Greece’s economy is in its fifth year of recession and could contract by more than 4.8% this year. Unemployment is also a record high, hitting tax receipts and requiring more spending on jobless benefits.

“According to provisional data, the deficit of the general government, as measured under the excessive deficit procedure (EDP), is estimated at €19.6bn or 9.1% of GDP (gross domestic product),“ statistics agency ELSTAT said on Monday.

Fiscal austerity measures - including income and property tax increases, a rise in value-added tax rates and cuts in wages and pensions - have helped Athens shrink the budget gap from 15.6% of GDP in 2009.

Greece, which is set for a national election on May 6, aims for a budget gap of 6.7% this year and a primary deficit of 0.2% of GDP.

After two years of austerity to tackle its debt crisis, the country is suffering major economic upheaval. Unemployment is at a record 21.8%, with joblessness among youth at a rate where more are out of work than in. It is not about to get any easier.

Whoever wins the election will have to agree additional spending cuts of 5.5% of GDP or about €11bn for 2013-2014, and gather about another €3bn from better tax collection to keep getting aid, the International Monetary Fund (IMF) has said.

The European Union and IMF have placed strict conditions on Greece receiving bailout money to help it settle its massive debt requirments.

ELSTAT said gross public debt rose to 165.3% of GDP last year from 145% in 2010.
greece  |  austerity measures
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Fewer high-risk election areas - Mthethwa

There are fewer high-risk election areas this year compared to past elections, Police Minister Nathi Mthethwa has said while visiting Manenberg in Cape Town.

 
 

Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...