The release of development funds from the state coffers goes slowly, despite the need to boost growth.

Three months before the end of the year, the degree of implementation of the development budget hardly reached 39%.

The Finance Ministry’s figures elaborated by StockWatch reflect the financial tightness in the development expenditure.

From €1.2 billion that the government estimated, it hardly managed to spend €468 million by the end of September.

The rate of implementation of the development expenditure is slightly lower than that of 2010, which stood at 41%.

Usually, the rate of implementation in the past quarter pushes rates up to 70%.

Last year, for example, the degree of implementation of the development budget reached 73% against 69% in 2009 – the year that the economy needed urgent development support due to the recession.

The delay in the implementation of the development budget raises concerns on whether the Finance Ministry’s target for 2012 is feasible.

The government cut €250 million from the development budget of 2012 bust supports that it will increase the degree of implementation to 90%, something that never happed before.

Austerity contributed to the “haircut” of a big part of capital expenditure such as the purchase of machinery and equipment.

For the purchase of machinery, only €10.1 million were spent from €35.1 million they intended to.

The items for the purchase of equipment shrunk to €9.6 million from €45.5 million calculated and €13.8 million spent last year.

Despite the financial crisis, the government has already spent a tidy sum for the purchase of land and buildings and for other projects that are in progress, such as the Presidency building and the reception at the presidential palace in view of the EU Rotating Presidency in the second half of 2012.

The degree of implementation of the specific budget stood at 79% in the first nine months, while in real numbers to €64.3 million from €81.6 million estimated.