Greece’s primary surplus exceeded 8.7 billion euros in Jan.-Sept. 2024

Greece’s state budget presented a primary surplus of 8,743 million euros in January-September 2024, against a primary surplus target of 5,297 million euros and a primary surplus of 5,987 million euros at the same period of the previous year, according to preliminary data available for the execution of the state budget on a modified cash basis, released by the economy and finance ministry on Wednesday.

According to ministry announcement, the state budget balance for the period of January – September of 2024 presented a surplus of 1,575 million euros, against a target of a deficit of 1,443 million euros that has been incorporated for the same period of 2024 in the 2024 Budget introductory report and a deficit of 397 million euros for the same period of 2023.

The ministry noted that part of the difference in tax revenues of 647 million euros is accounted in the fiscal result of 2023, while amounts concerning the time differentiation of the transfers to SSFs by 1,683 million euros and the military procurement cash expenditure by 899 million euros (2,582 million euros in total), do not affect the outcome in fiscal terms.

With the exception of the above amounts, the overperformance in the State Budget Primary Balance for the period of January – September is 216 million euros.

“Therefore, the Primary Balance in fiscal terms differs in comparison to the result in cash terms. It is pointed out that the aforementioned concerns the Primary Balance of the Central Administration and not of the whole of the General Government, which also includes the fiscal results of legal entities and the sub-sectors of LGs and SSFs,” the ministry said.

According to the announcement:

“For the period of January – September 2024, State Budget net revenues amounted to 50,906 million euros, showing a decrease of 1,228 million euros or 2.36% against the target of the corresponding period, which is included in the 2024 Budget introductory report, due to the fact that to the target for the 9-month period January-September 2024, the Budget introductory report includes:

a) the collection in March of 1,797 million euros from Recovery and Resilience Facility (RRF), of which the biggest portion, namely 1,687 million euros, was collected in December of 2023 while an additional amount of 159 million euros was collected in January 2024. In addition, the fourth installment from the RRF which has been approved and is expected to be disbursed in the next period, was foreseen in the September’s collections. b) the collection in June of the agreement’s value amounting to 1,350 million euros, for the service concession contract for the financing, operation, maintenance and exploitation of Egnatia Motorway and three (3) vertical road axes, which was signed on 29th of March 2024. The subsequent steps of the process until the payment of the fee are expected to be completed within the next months.

Accordingly, with the exceptions of the above amounts, the net revenues are showing an over performance of 3,610 million euros or 7.7% against the target. This increase is mainly due to: a) the increased tax revenues by 2,046 million euros, after deducting tax refunds and b) the increased PIB revenues by 697 million euros.

Tax revenues amounted to 48,972 million euros, 2,599 million euros or 5.6% higher against the target which is included in the 2024 Budget introductory report. This overperformance is due to the better performance of the previous year income taxes of natural and legal persons collected in installments until the end of February 2024 (it is noted that an estimated amount of 647 million euros is counted in the fiscal result of 2023), as well as, the better performance in the collection of the current year taxes. Therefore, the tax revenues overperformance which is accounted in the 2024 fiscal result, is 1,952 million euros.

It is noted that the above amounts concern the comparison against the State Budget targets, while during the preparation of the Preliminary State Budget of 2025, the relevant targets were re-estimated, taking into account the actual figures of revenues. 

Tax refunds amounted to 5,471 million euros, 533 million euros higher than the target (4,919 million euros). PIB revenues amounted to 3,597 million euros, 697 million euros higher than the target (2,900 million euros). A more precise allocation among the revenue categories of the State Budget will take place when the final Bulletin is issued.

Particularly, in September 2024 the State Budget net revenues amounted to 5,773 million euros, 1,456 million euros lower than the monthly target, mainly due to the non-collection of the estimated installment from the Recovery and Resilience Facility, as mentioned above, which will be collected in the forthcoming period.

Tax revenues amounted to 5,970 million euros, 700 million euros or 13.3% higher against the State Budget target. However, this must be considered alongside the significant increase in tax refunds by 511 million euros. Consequently, the increase in net tax revenues amounts to 189 million euros.

Tax refunds amounted to 973 million euros, 511 million euros higher than the target (462 million euros), as mentioned above.

PIB revenues amounted to 449 million euros, 127 million euros higher than the target (322 million euros).

State Budget expenditures for the period of January – September of 2024 amounted to 49,330 million euros, 4,246 million euros lower than the target (53,577 million euros), which is included in the 2024 Budget introductory report. Τhey were also increased in comparison to the respective period of 2023 by 637 million euros, mainly due to the increased interest payments. “In the Ordinary Budget the payments are shown decreased, compared to the target, by 3,575 million euros. This evolution is mainly attributed to the time differentiation of the transfers to SSFs by 1,683 million euros, as well as, to the military procurement cash expenditure of 899 million euros, which do not affect the outcome in fiscal terms. On the contrary, increased payments in relation to the target were presented in interest payments to service government debt by 461 million euros.

Noteworthy transfers are the 130 million euros which were paid by the Ministry of Rural Development and Food to ELGA, for the compensation of agricultural holdings affected by flooding, due to the DANIEL-ELIAS storms in September 2023 and for relevant land improvement programs, the 247 million euros which were paid by the Ministry of Infrastructure and Transportation as a grant to transportation entities (OASA, OASTH and OSE), the 276 million euros which were paid by the Ministry of Health as a grant to the National Centralized Health Procurement Authority (EKAPY) to cover the cost of supplying medicines for the needs of ESY hospitals and Papageorgiou hospital and the 128 million euros which were paid as a grant to Universities for covering their operational costs.

Investment expenditure amounted to 7,238 million euros presenting decreased payments by 672 million euros compared to the target.”