ELSTAT – Public debt reached 354 billion euros in the second half of 2021

The public debt reached 354 billion euros at the end of the second quarter of 2021, according to ELSTAT calculations.

Therefore, its upward trend continues, as at the end of the first quarter of 2021 the corresponding amount was 344.1 billion euros, while in the first quarter of 2020 it was 333.842 billion euros.

OECD: Favorable trend until 2060

At the same time, the Greek debt trend until 2060 is favorable, despite its increase during the pandemic, according to a recent OECD study.

According to the baseline scenario of the study, Greece is the only OECD country that does not need to take fiscal measures to prevent an increase in its debt.

This result, according to the OECD, is partly due to the reduction in public pension spending following the recent reforms and partly to the relatively high initial structural primary surplus of the country.

Eurostat objections

However, Eurostat raises objections regarding the course of the Greek debt.

The issue mainly concerns the guarantees of about 23 billion euros that he has given to the systemic banks to proceed with the securitization of red loans through “special vehicles” and for which the European Statistical Office (Eurostat) raises the issue of their registration – as a possible future liability of the country -for public debt.

The picture in terms of revenue

From there on, according to ELSTAT data, the primary surplus at the end of the first half, according to ESA (European System of Accounts), was 2.7 billion euros.

At the same time, according to the Authority, general government revenues in the second quarter amounted to 21,175 billion euros from 16,181 billion euros in the first quarter and 18,065 billion euros in the second quarter of 2020. Total expenditures were 25,170 billion from 23.337 billion euros in the first quarter and 23.735 billion euros a year earlier.

The general government balance stood at a deficit of 3.995 billion from a deficit of 5.67 billion euros in the corresponding quarter of 2020.

Taxes and social contributions

Income and property taxes amounted to 4.712 billion euros (22.3% of total revenue), up from 4.537 billion euros (25.1% of total revenue) last year.

Social contributions were € 5.951 billion (28.1% of total revenue), up from € 5.493 billion (30.4% of total revenue).

General government expenditure amounted to € 25.170 billion (of which € 23.939 billion in primary expenditure), compared to € 23.735 billion (of which € 22.478 billion in primary expenditure) in the second quarter of 2020.

Wage work was € 5.588 billion (22.2% of total expenditure), compared to € 5.571 billion (23.5% of total expenditure).

Social benefits were € 10.073 billion (40% of total expenditure), up from € 9.624 billion (40.5% of total expenditure).

Grants, finally, amounted to 2.345 billion euros (9.3% of total expenditure), compared to 2.052 billion euros (8.6% of total expenditure) in the second quarter of 2020.