Greece budget surplus exceeded government targets

Greek Ministry of Finance reported a budget surplus of 3.57 billion EUR in late July, which exceeded government targets with 0.874 billion EUR. For the same period last year, the country had a budget surplus of 3.71 billion EUR. The budget revenues for the first seven months of the year amounted to 28.09 billion EUR, which is 621 million EUR (-2.2%) below targets.

The Greek Ministry of Finance stated that the budget surplus is mainly due to cost reductions of almost 3.3 billion EUR. However, additional 390 million EUR are allocated to hospitals, and another 162 million EUR were allocated for subsidies to agriculture. The government has allocated an additional 122 million EUR for financial assistance to deal with humanitarian crises, related with refugees.

In July 2016, the budget revenues also remained below expectations despite of the strong tourism season. The budget revenues amounted to 5.03 billion EUR, which is 0.775 billion EUR below the forecasts.

For the first half of 2016 Greece recorded a primary budget surplus of 2.47 billion EUR, while expectations were for a deficit of 1.03 billion EUR. Revenue exceeded expectations by 3.9% to 22.9 billion EUR.

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