The deficit contracted to 2.79B euros in the Jan-July period, down from 5.27B euros in the same period in 2011.
What’s troubling is that revenue from indirect taxes fell 4.5% and from direct taxes was down 1.5%. It also seems as though some accounting or transfers were at work because spending was down only 1.7%.
A finance official said it will be difficult to meet the 4.5% of GDP deficit target this year.
