In 2011, the country's budget deficit is expected to reach to 8.5 percent of its gross domestic product (GDP), higher than the targeted 7.6 percent. The deficit is expected to reach to 6.8 percent of GDP in 2012, compared to a target of 6.5 percent set by its major lenders.
Meanwhile, the Greek cabinet approved 6.6 billion euro ($8.8 billion) in austerity measures for this year and 2012 on Sunday. The measures include laying off 30,000 public servants, which is expected to reduce the government wage bill by 300 million euro in 2012.
The government attributed a deeper than estimated recession for the missed budget deficit targets. The Greek economy contracted by 7.3 percent in Q2, 2011, compared with the same quarter last year.
The country is trying hard to meet its budget deficit targets to continue seeking aid from the European Union and the International monetary fund in order to avoid a default
Meanwhile, the European Union and IMF inspectors are in Greece to review the quarterly performance of the country's economy ahead of the release of the sixth tranche of 110 billion euro bailout package agreed in May 2010.