September deficit double that of 2009

The Ministry of Finance released the figure today on the state budget deficit. The deficit was up from EUR 2.822 billion in August to EUR 3.110 billion in September, which is more than double the figure seen in September last year (EUR 1.360 billion).

The projected deficit balance for 2010 is set at EUR 3.476 billion and so the September figure works out at 83% of the total for the year.

In contrast, budget receipts were 4% higher year-on-year in September at EUR 7.540 billion, but this is just 60.2% of the projection for 2010, so there is some catching up to do. The situation is not helped by the fact that expenditures in September were 24% higher than last year, amounting to EUR 10.650 billion.

It will take a few months before the government’s war on the deficit blackhole starts to kick in, but the various cuts and austerity measures should produce the desired effect in the end.

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