During all of the coverage of the macro consequences of a Greek exit, we sometimes lose sight of how serious the financial problems in the country really are.
A great post at The Prodigal Greek (h/t @economistmeg) takes a look at the budget execution report for January through April. It goes beyond the headline number – that the budget deficit fell well below the target of €3.3 billion at €1.7 billion – and takes a deep look at what Greece is dealing with.
A few highlights from the post:
Overall revenues are €495 short of target, even after tax increases
A €418 million shortfall in VAT revenues points to a profoundly depressed economy
Only four months into the year, Greece's social security funds have used 47.5 percent of their annual grant.
The next Greek government will inherit a depressed economy, plummeting revenues, unaffordable social security programs, and ever increasing interest payments. But because scaling back government spending is a huge part of the austerity program that will make Greece competitive in the look run, it's clear there is no solution that doesn't involve a great deal of pain.
See more scary facts about the Greek budget at The Prodigal Greek >
The full budget bulletin is here >
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