For the first two months of 2008, the surplus will be of some 0.2 percent of estimated GDP for this year.

The government targets a 2.8 percent budget deficit for 2008, higher than last year’s 2.4 percent. However, the government approved the first budget rectification for year last month, lowering funding for several ministries and institutions by a total €1.1 billion. Analysts are skeptical about the government’s ability to keep the budget deficit at 2.8 percent, as they say estimates by officials on revenues are overvalued. Furthermore, the government will face difficulties to cut spending during an election year, in which both general and local elections are scheduled. (NewsIn)