At the moment the Greek government is unable to work out how they can stop spending more money than they take in. This is belligerent behaviour at best – Here is how it can be fixed
In 2003 the Greek government’s:
tax revenue was 28 billion Euros
deficit was 11 billion Euros
Total spending in 2003 = 39 billion Euros
in 2012 the Greek government’s forecast:
tax revenue is 59 billion Euros
deficit is 29.8 billion Euros.
Total spending in 2012 = 88.8 billion Euros
Current cuts that the Troika are asking for and that are such a problem for the Greek government to identify?
How much more does the Greek government have to spend over the 2003 budget to balance the 2012 budget?
88.8 billion Euro minus 12 billion Euro = 76.8 billion Euro.
76.8 billion Euro as a percentage of the 2003 budget?
76.8 billion Euro divided by 39 billion Euro = 196%
Increase in 2003 budget required to make the required cuts?
+96%
The Greek government has to increase the 2003 budget by 96% to come into line with he cuts asked for by the Troika.
The maths are simple, the 2003 budget was less than ten years ago and yet the Greek government are behaving as if 12 billion Euro in cuts equates to passing kidney stones.
I hope this brief article highlights the complete incompetence and/or the complete unwillingness of the Greek political class to carry out the reforms required and shows what a compete waste of time and money it is to continue subsiding the Greek government.
Bailouts are simply propping up a corrupt and/or incompetent political system which is robbing the Greek private citizen blind.
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