Greece Beats 1Q Budget Targets for 2013

By Dow Jones Business News,  April 10, 2013, 08:25:00 AM EDT

ATHENS--Greek budget figures for the first quarter Wednesday were better than expected, a finance ministry official said Wednesday, with both primary and state budgets exceeding the goals set by the country's international creditors, largely as a result of government spending cuts.

Greece achieved a primary surplus of 508 million euros ($663 million) in the first three months of the year, which compares with a deficit target of EUR2.3 billion for the quarter and an actual deficit of EUR334 million in the first quarter of 2012, said the official.

The country also cut its budget deficit to EUR1.4 billion in the first three months of 2013, from EUR7.3 billion in the first quarter of 2012 and compared with a deficit target of EUR4.2 billion for this year's first quarter.

"The provisional data for the execution of the state budget for the first three months of 2013 show that Greece, with hard work but also at a high social cost, continues the undoubted painful, but necessary course towards fiscal reform, adjustment and discipline," said Alternate Finance Minister Christos Staikouras.

He added that revenue in the first quarter of 2013 was lower than in the comparative period in 2012, as had been expected, but was still "above target." The minister said there were shortfalls across the different categories of value-added tax, as well as in certain direct taxes, including those on tobacco and a special tax on energy products.

Write to Nektaria Stamouli at nektaria.stamouli@dowjones.com and Philip Pangalos at philip.pangalos@dowjones.com

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