Greek budget showed a primary surplus of 3.6 billion euros in January-July 2023

According to the data available for the execution of the State Budget on a modified cash basis, the State Budget balance for the period of January – July of 2023 presented a deficit of 1,435 million Euros, against a target of a deficit of 2,320 million Euros that has been incorporated for the same period of 2023 in the 2023 Budget introductory report and a deficit of 4,585 million Euros for the same period of 2022.

The State Budget Primary Balance amounted to a surplus of 3,558 million Euros, against the primary surplus target of 1,830 million Euros and the primary deficit of 1,161 million Euros performed at the same period of the previous year.

State Budget net revenues amounted to 37,148 million Euros, showing an underperformance of 538 million Euros or 1.4% against the target of the corresponding period, which is included in the 2023 Budget introductory report. 

The main reasons that led to this underperformance are the following: a) the agreement’s value for the award of the services concession contract for the operation and exploitation of Egnatia Odos motorway and three vertical road axes concession, for the period of 35 years, amounting of 1,496 million Euros, which was projected to be collected in June, was not collected, since the procedure for the approval of the contract is in progress.

b) the 1,718 million Euros third installment from Recovery and Resilience Fund (RRF) which was projected to be collected in July, was not collected.

On the contrary, the rest of revenues showed overperformance, mainly due to: (a) the increased 7-months tax revenues and (b) the collection of an amount of 603 million Euros from ANFAs, that was not projected in the 2023 Budget introductory report. 

State Budget total revenues amounted to 41,095 million Euros, 98 million Euros higher or 0.2% against the target. 

More specifically, the major revenue categories of the State Budget are as follows:

I. Tax revenues amounted to 33,667 million Euros, 2,246 million Euros or 7.1% higher against the target which is included in the 2023 Budget introductory report. Part of this increase, amounting to approximately 470 million Euros, concerns the extension of the deadline of the payment of road duties until the end of February 2023, while it was estimated that this amount would be collected in December 2022. The remaining amount of over execution is due to the better performance of income taxes of natural and legal persons of the previous year, collected in installments until the end of February 2023, as well as, the best performance of the collection of taxes of the current year.  Particularly for the main tax revenues categories we observe the following:   – VAT revenues amounted to 13,365 million Euros, 631 million Euros higher against the target. – Excise tax revenues amounted to 3,896 million Euros, 76 million Euros lower against the target. – Property tax revenues amounted to 1,779 million Euros, 26 million Euros higher against the target. – Income tax revenues amounted to 10,112 million Euros, 825 million Euros higher against the target. II. Social Contributions amounted to 34 million Euros, 1 million Euros higher against the target. III. Transfers amounted to 4,526 million Euros, 1,768 million Euros lower against the target which is included in the 2023 Budget introductory report, mainly due to the non-collection of the third installment from Recovery and Resilience Fund (RRF), amounting of 1,718 million Euros but also of the reduced PIB revenues and despite the collection of an amount of 603 million Euros from ANFAs as mentioned above. An amount of 2,012 million Euros, out of 4,526 million Euros, comes from PIB revenues, which is 691 million Euros lower against the target.

IV. Sales of goods and services amounted to 537 million Euros, 1,525 million Euros lower against the target which is included in the 2023 Budget introductory report mainly due to the non-collection in June of the agreement’s value for the concession of Egnatia Odos motorway, amounting of 1,496 million Euros, as mentioned above.

V. Other current revenues amounted to 2,330 million Euros, 1,147 million Euros higher against the target which is included in the 2023 Budget introductory report, mainly due to the increased revenues from the return of expenditure by 644 million Euros and from interest on deposits in the Bank of Greece, by 260 million Euros in June. An amount of 259 million Euros, out of 2,330 million Euros, comes from PIB revenues, which is 157 million Euros higher against the target.

Tax refunds amounted to 3,947 million Euros, 636 million Euros higher than the target (3,311 million Euros) part of which is due to the VAT refund, in March, to the Renewable Energy Sources Operator & Guarantees of Origin (DAPEEP SA), amounting to approximately 220 million Euros arising from revenues collected by DAPEEP and attributed to the State from the Recovery Mechanism in Day-Ahead Market. Ιn July 2023 the State Budget net revenues amounted to 6,274 million Euros, 1,744 million Euros lower than the monthly target, mainly due to the non-collection of the third installment from Recovery and Resilience Fund (RRF), which was projected to be collected in July. State Budget total revenues amounted to 6,832 million Euros, 1,694 million Euros lower than the monthly target.   More specifically, revenues of the State Budget per major category in July 2023, are as follows:   I. Tax revenues amounted to 6,453 million Euros, 92 million Euros or 1.4% higher against the target.  Particularly for the main tax revenues categories concerned, the following is observed:   – VAT revenues amounted to 2,324 million Euros, 60 million Euros higher against the target. – Excise tax revenues amounted to 669 million Euros, 15 million Euros lower against the target. – Property tax revenues amounted to 212 million Euros, 27 million Euros lower against the target. – Income tax revenues amounted to 2,632 million Euros, 38 million Euros higher against the target. II. Social Contributions amounted to 5 million Euros in line with the target.   III. Transfers amounted to 119 million Euros, 1,728 million Euros lower against the target which is included in the 2023 Budget introductory report, due to the non-collection of the third installment from Recovery and Resilience Fund (RRF), as mentioned above. An amount of 86 million Euros comes from PIB revenues, which is 26 million Euros lower against the target. IV. Sales of goods and services amounted to 96 million Euros, 17 million Euros lower against the target which is included in the 2023 Budget introductory report. V. Other current revenues amounted to 159 million Euros, 41 million Euros lower against the target which is included in the 2023 Budget introductory report. An amount of 2 million Euros, comes from PIB revenues, which is 6 million Euros lower against the target. Tax refunds amounted to 558 million Euros, 50 million Euros higher than the target (509 million Euros).   PIB total revenues amounted to 88 million Euros, 32 million Euros lower than the target (120 million Euros).  State Budget expenditures for the period of January – July of 2023 amounted to 38,583 million Euros, 1,423 million Euros lower than the target (40,006 million Euros), which is included in the 2023 Budget introductory report, while they were increased in comparison to the respective period of 2022 by 295 million Euros, mainly due to the increased interest payments by 1,552 million Euros, taking into account opposite changes in other expenditure categories. In the Ordinary Budget the payments are shown decreased, compared to the target, by 1,085 million Euros. This evolution is mainly attributed to the time differentiation of military procurement cash expenditure of 680 million Euros.  Noteworthy events are the grant to the Information Society S.A. of 503 million Euros, in order to serve the needs of Market Pass, the grant to the Green Transition Fund amounting to 367 million Euros of excess profits of energy producers, for the period from October 1, 2021 to July 30, 2022, as well as, this year’s heating oil subsidy payments of 100 million Euros. All aforementioned payments were made with the use of reserve appropriations dedicated for tackling energy crisis measures (non allocated expenditure). Investment expenditure amounted to 5,333 million Euros presenting decreased payments by 337 million Euros. PIB expenditure includes amount of 83 million Euros for COVID-19 measures, of which the most important are the reinforcement of health institutions with auxiliary staff to respond to the needs arising from the COVID-19 pandemic in the Regions, the support of startups within the framework of Elevate Greece, the creation of a network of nurses for the collection of samples of biological material and nursing assistance for suspected cases of COVID-19 at home and the grant to existing SMEs in the retail sector that have a physical store, for the development, upgrade and management of an online store.