UPDATE 1-Greek budget deficit widens despite new taxes

* Central govt budget gap up 5.1 pct y/y in Jan-Nov
* Recession hurts receipts, boosts social spending
* Greece may miss 2011 budget deficit target, says official
* Emergency taxes fail so far to markedly lift receipts

ATHENS, Dec 13 (Reuters) - Greece's budget deficit
continued to widen in November as an austerity-fuelled recession
cancelled out much of the extra revenues the government was
hoping to raise through emergency taxes, data showed on Tuesday.
The budget gap of the central government widened 5.1 percent
year-on-year to 20.52 billion euros ($27.1 billion), according
to finance ministry figures for Jan-Nov. This means that Greece
will likely miss its 2011 deficit targets and may need
additional austerity measures to catch up with its budget goals
next year.
Debt-laden Greece has been consistently missing the deficit
targets set by its international lenders under a bailout plan
agreed last year, partly due to a deeper-than-expected recession
but also because of its own failure to quickly implement reforms
and crack down on tax evasion.
The economy is seen shrinking by 5.5 percent in 2011, its
fourth consecutive year of recession. Under the 2012 budget plan
approved last week the budget deficit is expected to narrow to
9.0 percent of GDP this year from 10.6 percent in 2010, a target
the finance ministry said was still feasible.
This year's budget goals largely hinge on a string of
emergency taxes imposed in September after Greece's lenders
threatened to withhold bailout funds if it did not meet its
budget goals, a move that would have effectively rendered the
country bankrupt.
"The current revenue shortfall is expected to be addressed
in December, when the (emergency) tax measures will yield
results," the finance ministry said in the statement.
But a senior government official was less optimistic.
"If current spending and revenue trends continue, the
deficit will be at about 10 percent of GDP and not at about 9
percent," the official, who declined to be named, told Reuters
before Tuesday's budget data were announced.
The new taxes included a charge of up to 5 percent on gross
personal income as well as a controversial property tax which
households must pay or face having their electricity cut off.
These measures have failed to visibly boost net tax
receipts, which shrank by 3.1 percent year-on-year in Jan-Nov, a
slightly slower pace than their 4.1 percent drop in the first 10
months of the year.
Recession is dealing a further blow to the budget as the
government steps up grants to social security organisations,
whose revenues are drying up. Spending before interest payments
rose by 3.0 percent year-on-year in Jan-Nov, according to
Tuesday's figures.
The data refer to the state budget deficit, which excludes
items such as local authorities. Even though they are not
identical with it, they are indicative for the general
government shortfall, the benchmark for the EU's assessment of
Greece's economic policy programme.

Jan-Nov Jan-Nov Change (%) 11-month
2011 2010 2011
target

Net
revenue 43.833 45.235 -3.1 44.045

Spending 62.706 59.049 6.2 63.499

Public
investment
-revenue 2.643 1.459 81.2 2.623
-outlays 4.287 7.161 -40.1 4.232

Deficit 20.516 19.516 5.1 21.063