According to data forwarded by the National Statistical Service to its European counterpart a week before the general elections, last year’s budget deficit closed at 5.7 percent of gross domestic product, compared to the figure of 5 percent projected by the ministry, reported Kathimerini. At the same time, public debt rose to 99.8 percent of GDP from an estimated 97.6 percent.

Despite the fact that the 2008 deficit was higher than expected, the ministry had insisted on an optimistic scenario for 2009, but it was hardly realistic. Its estimate for this year, as forwarded to Eurostat, envisages a deficit of 6 percent of GDP and debt of 107 percent of GDP.

The ministry’s estimate that the deficit rose this year by just 0.3 percentage points has generated some ironic smiles in Brussels.

Based on the latest data available for the budget’s execution in the first eight months of 2009, the European Commission estimates the deficit will exceed 8 percent this year, or possibly even 9 percent, while debt will reach 110 percent of GDP. This is vindicated by the figures for 2008.

This major revision of the country’s underlying financial state is dealing another blow to the country’s credibility, after the downward revision last month of 2008 growth from 2.9 percent to just 2 percent.