Latest MoF data show that general government deficit, according to cash data, eased by 27.6% y-o-y to €10,609m in 7M’12 from €14,648m last year, with primary deficit substantially improving to just €229m from €4,056m in 7M’11. Current period data incorporate:

• A drop of state budget by 24.9% y-o-y to €12,189m with primary deficit slipping 46.6% y-o-y to €3,081m.
• Extrabudgetary funds’ (i.e. legal entities) surplus of €527m from €580m last year.
• Local governments’ surplus of €398m down from last year’s €992me grounds.
• Social security funds’ and hospitals’ surplus of €655m from just €20m last year.

Released data imply a drop of general government deficit m-o-m to €729m in July from €1,697m in June, and €567m in May. What is more important is that July primary balance recorded a surplus of €261m, from deficit of €1,045m in June and surplus of €673m in May, mainly reflecting a positive contribution from state budget (€236m) and local governments (€228m) more than offsetting social security funds’ primary deficit of €273m.

It is reminded that general government deficit (ESA95) stood at €19,586m or 9.1% of GDP in 2011 and is targeted to ease to €13,733m or 6.7% of GDP in 2012.

MoF also released general government arrears (>90days), which marginally rose m-o-m to €6,676m at the end of July from €6,619m in June, with state budget arrears standing at €884m (13% of total), local authorities’ at €814m (12%), hospitals’ at €1,636m (25%), social security funds’ at €3,019m (45%) and extrabudgetary funds at €323m (5%).