The Greek government conceded Monday it won’t meet its target of cutting the deficit to 6.5 per cent of gross domestic product in 2012, as originally agreed with bailout creditors, but will cut it only to 6.8 per cent.

According to figures in the draft budget submitted, Greece’s debt is projected to reach 172.7 percent of GDP in 2012, or 371.9 billion.

Greece relies on regular payouts from a 110 billion ($150 billion) bailout from other eurozone countries and the International Monetary Fund. Debt inspectors are in Athens reviewing reforms to see if Athens qualifies to receive the next 8 billion instalment of its bailout. Without it, Greece will run out of funds in mid-October.

On Sunday, Greece’s finance ministry said it won’t meet its deficit reduction target for this year. Its announcement prompted widespread selling in stock markets Monday.