The government aims at saving some half a billion euros from state corporations next year by reducing their spending by 14 per cent and increasing their revenues by 10 per cent.
The Finance Ministry is preparing the 2012 budget for the over 130 corporations and is eyeing a spending cut by some 600 million euros. About 250 million will be saved through salary cuts, while other expenses will be contained to the tune of 350 million, according to the draft budget for state companies.
The big challenge is the increase of revenues by some 300 million euros. The companies to pull the revenues cart will be those of public transport, the two defence industries and the Horse Racing Organization of Greece (ODIE).
This year revenues from state companies are estimated to have contracted by 500 million euros, so the target of saving 800 million euros can only be attained through reducing spending – which appears to be in the order of a reduction of 1 billion euros.
Source: Kathimerini
