UPDATE 1-Greek central govt deficit narrows in Jan-Sept, revenues stagnate


* Central govt budget gap narrows 37 pct y/y in Jan-Sept

* Figures exclude local authority and social securtyspending

* Tax revenues still 1.3 bln eur short of target(Adds details)

ATHENS, Oct 11 (Reuters) - Greece narrowed its centralgovernment budget deficit, excluding local authority and socialsecurity spending, by 37 percent in the first nine months of2012, the finance ministry said on Thursday, but revenues werestill off target.

Spending cuts reduced the budget gap to 12.6 billion euros($16.3 billion) from 20.1 billion in the same period last year.

The figures exclude key elements of the general governmentbudget, which is the one used by the European Union to assessGreece's fiscal performance under an EU/IMF bailout programme.

Mired in recession, Greece is struggling to meet the targetsset under two bailouts since 2010 totalling more than 200billion euros ($258.03 billion).

Despite fierce tax hikes, net government revenue stagnatedat 36.7 billion euros, 1.3 billion euros short of an interimtarget set by the bailout plan, the figures showed.

In a bid to make up the shortfall, the finance ministry hasslashed investment by about a fifth, further hurting theeconomy. It also cut back on primary spending, before interestservice costs, by 9 percent, partly by suspending payments togovernment suppliers and state workers.($1 = 0.7751 euros)

(Reporting by Harry Papachristou)

((harry.Papachristou@thomsonreuters.com)(+30 210 33 76 455 or+30 6949 440 106)(Reuters Messaging:harry.papachristou@thomsonreuters.com@reuters.net))


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