20% of greek budget goes to debt service, killing host
DrMarty | May 22, 2012 at 03:06 amby
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Figures have come to the surface that nearly 20% of the Greek national budget goes to debt service. As could be expected, the Greek budget would have a surplus if it were not for the debt payments.
In fact, it is demonstrable that it was the fact that the memorandum was implemented, which has led to the collapse of the economy, and had it not been, Greece would have had a surplus.
According to a report by Eurobank EFG, in 2011, Greece made EU16,384 million in interest payments, which compares with primary expenditures (not including debt) of EU60,395 million and a revenue collection of EU53,861 million.
Although in 2011, there was a so-called primary deficit of some EU6 billion, because there was a shortfall in revenues, and these revenues fell because of the collapse of the economy. VAT collapsed because people simply don't have the money to spend.
Expenditures increased because, when companies went bankrupt because of the economic collapse, government transfers to the social security fund had to increase. Social security fund outlays increased because unemployment doubled. There has also been an increase in interest rates.
The projected picture for 2012 is said to be "encouraging," with revenues at EU56,159 million euros and primary expenditure at EU57,248 and interest payments at EU13,050 million. This already figures in a further decline in the economy and represents simply looting the population to pay the debt.