Greece’s state budget deficit shrank by 38.7%

Greece's state budget deficit shrank by 38.7 pct in the January-May period, compared with the corresponding period last year, a performance exceeding targets set by the Stability and Growth Program, official figures showed on Monday.

A finance ministry announcement said the budget deficit fell to 8.978 billion euros in the five-month period, from 14.655 billion euros last year, for a decline of 38.7 pct. The country's updated Stability and Growth program envisages an annual target for a decline of 35.1 pct. The ministry attributed this improvement to reduced budget spending and higher revenues, a performance achieved even before additional government measures were fully integrated.
Net budget revenues grew 8.3 pct in the January-May period, down from an annual growth target of 11.7 pct, while budget spending fell 10.5 pct, from an annual target of 4.8 pct, reflecting an 11.3 pct decline in primary spending (4.4 pct annual target), while spending on interest fell 7.5 pct (annual target 5.1 pct).

Spending in a Public Investments Program fell 29.6 pct in the five-month period, with revenues down 43.2 pct over the same period.