Sentences with phrase «primary surplus»
The phrase "primary surplus" refers to a situation where a country's government revenue exceeds its expenses, not counting the interest it pays on its debts. It means that the government is collecting more money from taxes and other sources than it is spending on its operations and public services. Full definition
«The European creditors also have a more optimistic view of Greece's fiscal and macro prospects than the IMF, including that Greece will be able to maintain primary surpluses of 3.5 pecent of GDP for the coming years.
cnbc.com
Data from the European Commission indicates that the Greek deficit should fall below 3 percent in 2016 and that Athens should outperform its agreed primary surplus target of 0.5 percent this year.
Greece's leftist - led government and the central bank also want lower primary surplus targets, arguing this will give Athens room to cut taxes and help the battered economy return to growth after a protracted recession.
Tsipras added that his «national salvation» government has a reform plan that will allow Greece to avoid deficits, even though it will not be achieving primary surpluses.
But disregarding its own research, the IMF's debt sustainability report says that because the Greeks are incapable of delivering 4 1/2 percent primary surplus, they should reach just up to 3 1/2 percent.
Cyprus is operating with an essentially balanced budget and with a good primary surplus; our budgetary planning for the period 2017 - 2019 remains safely within the margins of a balanced budget, ensuring that the public debt as a % of GDP will start decreasing.
Greece, however, won flexibility regarding the 2015 primary surplus target.
But significant changes in policies since then — not least, lower primary surpluses and a weak reform effort that will weigh on growth and privatization — are leading to substantial new financing needs.
The IMF, meanwhile, believes Greece can achieve a primary surplus of only 1.5 percent per year.
So we know what the outcome of a successful negotiation would be: Greece would be obliged to run a positive but small «primary surplus,» that is, an excess of revenue over spending not including interest.
That means the country will have to deliver a primary surplus of 1 percent of gross domestic product this year and 2 percent in 2016, rising to 3.5 percent in 2018.
And if those states can bring their budgets into a primary surplus, then we don't need the bankruptcy provision, since they'll be easily capable of rolling over their debts.
As a result, unless or until those states can bring their budgets into a primary surplus, introducing such a provision would certainly do more harm than good.
«When Greece has achieved, or is about to achieve, a primary surplus and fulfilled all of its conditions, we will, if need be, consider further measures for the reduction of the total debt,» he said, according to Reuters.
It would mean Greece following through on its market reforms and privatizations + Greece reforming and downsizing its civil service + Greece maintaining a stable government despite public outcry + Greece fixing its tax collection system + the troika being willing to put off some Greece interest payments and then writing off some significant portion of Greece's debt when Greece's government finally consistently reaches a primary surplus.
The plan is premised on a primary surplus target of 1 %, 2 %, 3 %, and 3.5 % of GDP in 2015, 2016, 2017 and 2018 respectively (both sides agree on these targets).