Greece’s closely monitored budget showed a deficit of 194 million euros in the first two months of 2015, a reversal from a surplus of 487 million euros in the corresponding period last year.
The slide in the state’s finances is attributed directly to political uncertainty in the country before and after the Jan. 25 election.
Moreover, the primary surplus in January and February 2015 was 1.238 billion euros, down from 2.063 billion euros over the Jan-Feb 2014 period. That figure also falls short of a surplus goal of 1.411 billion euros.
Net budget revenue totalled 7.790 billion euros in the two-month period, down 11% from a budget target for the period, while net regular budget revenue totalled 7.293 billion euros, down 1.173 billion euros or 13.9 % from budget targets.
Tax revenue totaled 6.536 billion euros, 13.0 % or 972 million euros lower than targets. The shortfall was mainly due to a 19.0 %-drop in direct taxes, which at 2.751 billion euros were 643 million euros lower than target revenues.
Tax returns totaled 608 million euros, sharply up from a budget target of 463 million. Public Investment Programme revenue totaled 496 million euros, up by 206 million euros from budget targets.
State budget spending totaled 7.984 billion euros, down from a budget target by 843 million euros in the two-month period. Regular budget spending totaled 7.746 billion euros, down 731 million euros from targets due to a reduction in primary spending by 591 million euros and outflows for arms procurements programmes by 70 million euros, despite 29 million euros spent on elections and 27 million euros on farming subsidies. Public Investment Programme spending totaled 238 million euros, down 112 million from budget targets and 369 million euros compared with the same period in 2014.
The highest drop was in tax revenues from direct taxes from past tax years, which was 349 million euros or 46.8 % lower than targets, while income tax revenues fell short by 221 million euros or 17.2 %. Revenues on property tax were 10.3 % or 78 million euros lower than targets.