New Greek Budget Projects an Huge Increase in Debt as a Percent of GDP

The Greeks have released their budget for 2013, and it's a shocker. Included in the budget are the following figures:

• Debt-to-GDP will rise to 189.1 percent in 2013 (revised up from 179.3 percent)
• The government will target a budget deficit of 5.2 percent of GDP (revised up from 4.2 percent)
• 2012 GDP will contract by 4.5 percent (revised up from 3.8 percent)
• The government will target a primary surplus of 0.3 percent of GDP (revised down from 1.1 percent)

This budget is worse than the 2010 projections. Zerohedge put together a graph illustrating just how much worse the projections are two years on (budget released today in blue, 2010 projections in red):

The IMF had been hoping that the Greeks would manage to get their debt to GDP down to 120 percent by 2020. Considering that the newest budget projects a debt to GDP rate of 184.9 percent in 2016 it is unlikely that this goal will be reached. 

The budget comes ahead of a vote on the economic reforms being demanded by international lenders. Without the reforms being agreed to Greece will not receive its next bailout installment. Greek Prime Minister Antonis Samaras will be facing opposition from his own coalition partners to get the reforms passed. 

Greece's main union has already scheduled strikes for next week in protest against the austerity measures included in the reforms. 

Comments

[John]

The government will target a budget deficit of 5.2 percent of GDP (revised up from 4.2 percent)
2012 GDP will contract by 4.5 percent (revised up from 3.8 percent)

But I thought spending was essential to saving any economy? You mean Pauli Krugnuts is lying?

[PapayaSF]

Don't worry, they can always raise taxes on the rich and the corporations and cut the military, right?

[Almanian's Evil Twin]

Just eliminate Waste, Fraud and Abuse? - boom. No more problems, amirite?

[Jerry on the road]

To be fair, most of the spending from the loans they get is to pay off foreign banks and creditors.

[Paul.]

I think that the argument will be that the reason that their economy is shrinking is because they aren't spending enough. If they spent right to the magical threshhold, then suddenly the Greek Economy would grow, and deficits would evaporate.

[Res Publica Americana]

I hope the bailout deal falls through and Greece implodes. It seems to be the only way to teach the reds and their pink cohort of sympathizers a potent enough lesson to effect change.

[R C Dean]

I hope the bailout deal falls through and Greece implodes.

It comes down to whether the Greeks are more likely to toss a government that agrees with "austerity, or the Germans are more likely to toss a government that's willing to give the Greeks a blank check.

[In Time Of War]

I think what the Greeks may not be internalizing is that austerity measures are coming, period. All they are deciding is whether austerity is implemented under controlled conditions or anarchy. It's their choice.

[Sudden]

The government will target a budget deficit of 5.2 percent of GDP (revised up from 4.2 percent)

By that metric, we are twice the country Greece is!

'Murica, FUCK YEAH!

[Question of Auban]

Off topic but important: This is one of many reasons to demand PAPER ballots.

"MARION [Ohio]? Joan Stevens was one of several early voters at the polls on Monday. But when Stevens tried to cast her ballot for president, she noticed a problem.

Upon selecting "Mitt Romney" on the electronic touch screen, Barack Obama's name lit up.

It took Stevens three tries before her selection was accurately recorded."

http://www.marionstar.com/arti.....ck_check=1

[Loki]

But no matter what happens just remeber: vote fraud only happens when Rethuglicans win.

[Anonymous Coward]

Are you suggesting that machines can be...manipulated and aren't the perfectly accurate instruments of the people's will that e-voters claim they are?

Well I just won't believe it!

[Paul.]

If I'm correct on the normal timeline of events within a collapsing country, right about now the Greek Government should commence to kicking out all of the productive people.

[Loki]

Greece's main union has already scheduled strikes for next week in protest against the austerity measures included in the reforms.

Yeah, that graph just screams "austerity".

[Oso Politico]

I think that the governance of Greece should be turned over to Krugnuts and friends for a vast social experiment in Keynesian economics. Let them put their dicks where their mouths are - so to speak.

[JW]

Debt-to-GDP will rise to 189.1 percent in 2013 (revised up from 179.3 percent)

Do you see, now, the monster that is austerity? DO YOU?

I hope you choke on your orphan stew.

[Romulus Augustus]

Anybody have the stats handy as to Greece's debt to GNP when they joined the European Union? As I recall, they had one of the best
performing economies in Europe at the time. Shows what can happen when you start gobbling the golden eggs faster than the goose can lay them.

[Stormy Dragon]

As I recall, they had one of the best performing economies in Europe at the time.

Yes, because they were just making up numbers at the time.

[Julio Cesar Samper Uribe]

When you feel entitled to go to school until age 30, get a public sector job and sorta-work from 30 to 50, and then retire with full pay and benefits until you probably die at age 90, expect this to happen.