Greece Reports 46% Reduction in Deficit to End-June

[Beet]

July 12 (Bloomberg) -- Greece’s budget deficit shrank 46 percent in the first half of the year, preliminary data from the Finance Ministry showed, as the government cut spending and renewed efforts to increase revenue.

The shortfall, on a fiscal basis, fell to 9.65 billion euros ($12.1 billion) from 17.87 billion euros in the year- earlier period. That beat the government’s 39.5 percent target, according to an e-mailed statement from the Athens-based ministry.

Net ordinary budget spending fell 12.8 percent, compared with a goal of 5.5 percent for the year, according to the statement. Ordinary budget revenue increased 7.2 percent in the period, falling short of a 13.7 percent target.

http://www.businessweek.com/news/2010-07-12/greece-reports-46-reduction-in-deficit-to-end-june-update1-.html

[opebo]

Very impressive, though of course entirely counter-productive.

[phk]

With the extent of previous goings on in Greece, its on the right track.

[© tweed]

Very impressive, though of course entirely counter-productive.

for who?  Greece lacks autonomy, obviously.

[opebo]

Very impressive, though of course entirely counter-productive.

for who?  Greece lacks autonomy, obviously.

For the economy.  Austerity measures in times of economic downturn only lead to an endless downward spiral, exactly as in the Great Depression.  What Greece and others need is more spending and inflationary, not deflationary, policy.