State primary deficit down by 4.6 billion euros compared to forecast

Tax revenues rose impressively by almost 20% above the target in the 7th month of 2022, according to official budget data, which is partly due to the inflation “rally”.

In particular, tax revenues amounted to 31,094 million euros, up by 5,167 million euros or 19.9% ​​compared to the target included in the introductory report of the 2022 Budget. This overperformance is due to the extension of the deadline for the payment of road-use fees until the end of February 2022, to previous year’s taxes collected in installments until the end of February 2022, to the collection of the current year’s taxes, as well as to the collection of the first three installments of ENFIA property tax during the months of May, June and July, while it had been predicted that they would be collected in September, October and November respectively. Especially for the month of July, the income was boosted by the significant collection of the refundable advance which amounted to approximately 897 million euros for the month in question.

Deputy Finance Minister: Public revenues continue along  a good path

For his part, Deputy Finance Minister Theodoros Skylakakis said: “Public revenues continue along a good path in the month of July. This is linked to the resilience shown by the Greek economy in the face of the enormous external pressures it has faced in recent years. Particularly important is the massive return of almost a third of the refundable advance by small and medium-sized enterprises, despite the fact that there was an alternative to paying in very many and low-interest installments. This massive return proves that something has started to change in the very business model of small and medium-sized enterprises.”

According to the provisional data on the execution of the state budget, on a modified cash basis, for the period January – July 2022, there is a deficit in the balance of the state budget of 4,591 million euros against a target for a deficit of 9,180 million euros included for the corresponding period of 2022 in the introductory report of the 2022 Budget and a deficit of 12,515 million euros in the corresponding period of 2021. The primary result was a deficit of 1,167 million euros, against a target for a primary deficit of 5,808 million euros and a primary deficit of 9,063 million euros for the same period in 2021.

Revenue

The amount of net revenues of the state budget amounted to 33,697 million euros, showing an increase of 4,797 million euros or 16.6% compared to the estimate for the corresponding period included in the introductory report of the 2022 Budget, despite the reduced revenues of the Public Investments Program.

The total revenues of the state budget amounted to 36,846 million euros, increased by 5,556 million euros or 17.8% against the target.

Revenue returns amounted to €3,149 million, up €758 million from the target (€2,391 million).

The total revenue of the Public Investment Program amounted to 1,776 million euros, reduced by 384 million euros from the target (2,160 million euros).

For July 2022, the total net revenue of the state budget amounted to 7,438 million euros, increased by 2,718 million euros compared to the monthly target.

The total revenues of the state budget amounted to 7,892 million euros, increased by 2,677 million euros compared to the forecast for the corresponding period included in the introductory report of the 2022 Budget.

Tax revenues amounted to 6,421 million euros, up by 1,582 million euros or 32.7% against the target, mainly due to the collection of the third tranche of ENFIA which was forecast to be collected in the month of November, and the significant collection from the refundable deposit.

Revenue returns amounted to €455 million, down €41 million from the target (€496 million).

The total revenue of the Public Investment Program amounted to 514 million euros, increased by 424 million euros compared to the target (90 million euros).

Expenses

The expenditure of the State Budget for the period January – July 2022 amounted to 38,288 million euros and is presented increased by 209 million euros compared to the target (38,079 million euros), which is included in the introductory report of the 2022 Budget.

In the section of the Regular Budget, the payments are shown reduced compared to the target by 581 million euros. This development is mainly due to the postponement of the payments of the defense procurement programs by 670 million euros. Payments for collateral forfeitures are also reduced by 392 million euros. On the contrary, increased payments in relation to the objectives are observed mainly in grants to social welfare and pension funds (by 559 million euros).

Payments in the investment expenditure segment amounted to 5,350 million euros, which is an increase of 789 million euros compared to the target of 4,561 million euros.

Payments

The provisional picture of the main expenditure payments for fiscal aid measures taken due to the pandemic for the period January – July is as follows:

a) the support of small and very small businesses affected by COVID-19 in the Regions in the amount of 160 million euros from the Public Investments Program,

b) the public contribution for the repayment of business loans of affected borrowers amounting to 79 million euros from the Public Investments Program,

c) the working capital subsidy for tourism businesses amounting to 42 million euros from the Public Investments Program,

d) the support of health institutions with auxiliary staff in the Regions to the amount of 53 million euros from the Public Investments Program,

e) the emergency grant of entertainment businesses, gyms, dance schools, etc., affected by the pandemic. amounting to 44 million euros, from the Public Investments Program,

f) the special purpose compensation expense of 149 million euros, which was paid by the Ministry of Labor and Social Affairs (category of transfers),

g) the additional grants to the National Health System (EOPPY), to the amount of 90 million euros and to hospitals and regional health administrations, to the amount of 91 million euros, as well as the purchase of vaccines with 258 million euros,

h) the additional grant to the Public Employment Service to the amount of 400 million euros to cover the loss of revenue due to a reduction in employee insurance contributions and the grant to e-EFKA (Unified Social Security Fund) to the amount of 150 million euros to cover the loss of revenue from the reduction of contributions collected in favor of DYPA and

i) the state compensation for landlords amounting to 49 million euros, due to reduced rents they receive.

Tackling the energy crisis

The provisional picture of the main outlays of expenses for the measures to deal with the energy crisis, concerning the Central Administration, for the period January – July, is as follows:

a) a grant to the Welfare Benefit and Social Solidarity Organization OPECA of 206 million euros, which is broken down: 120 million euros for the extraordinary installment of the child benefit, 46 million euros for the payment of the increase in the income support of beneficiaries of the minimum guaranteed income, 33 million for the extraordinary financial support of the disabled and 7 million euros for the increase of the pension of uninsured elderly persons,

b) a grant to the e-EFKA (Unified Social Security Fund) of 135 million euros for the extraordinary financial support of vulnerable pensioners,

c) grant to the Information Society for the support of natural persons and freelancers in order to deal with the increase in the cost of motor fuels (fuel pass) to the amount of 131 million euros and for the support due to increased electricity bills (power pass) to the amount of 280 million euros,

d) grant to OPEKEPE (Organization for Payments and Control of Community Aid Guidance and Guarantees) of 50 million euros to deal with the consequences in Greek livestock farming due to international developments,

e) special purpose compensation to support TAXI operators and drivers amounting to 5 million euros and

f) diesel fuel subsidy of €74 million.

For the period of January – July 2022, the state budget expenditures are presented reduced, compared to the corresponding period of 2021, by 1,195 million euros.