20.2.13
According to the General Accounting Office, revenue for the first two weeks of February was found to be 181 million euros less than what was originally estimated. About 1.174 billion euros were collected instead of 1.365 billion euros, troubling the government and treasury.
The new shortfall demonstrates not only the tax authority’s inability to collect taxes, but also that majority of law-abiding citizens have been brought to their tax-paying limits. The question is whether this negative trend in revenue can be turned over and to what extent outstanding debts can be collected and tax evasion dealt with.
The new general secretary at the Ministry of Finances H. Theoharis will attempt to collectively restructure the tax-collecting mechanism, in an effort to reduce losses. Paradoxically, the shortfalls have not caused serious problems to the fiscal management, due to the significant cut in public spending. These cuts balance out the revenue shortfalls, maintaining the downward trend in deficit reduction.
