Greek state budget: Exceeding 2.5 billion euros more in revenues in first four months

Excess revenues by 13.5% or 2.496 billion euros in relation to the target is presented by the execution of the budget during the first quarter of 2023.

In particular, according to the provisional data presented by the Ministry of Finance, the amount of net revenues of the state budget amounted to 21.042 billion euros, increased compared to the target included in the corresponding period in the introductory report of the 2023 Budget. As pointed out, the over-execution is mainly due to: (a) the increased tax revenues of the four months, (b) the collection of an amount of 603 million euros from ANFAs, which was not foreseen in the introductory report of the 2023 Budget and (c) the increased revenues of the Public Investment Budget.

Tax revenues amounted to 17.870 billion euros, increased by 1.635 billion euros or 10.1% compared to the target included in the introductory report of the 2023 Budget. Part of this increase, amounting to approximately 470 million euros, concerns the extension of the deadline for the payment of road tax until the end of February 2023, while it was estimated that this amount would be collected during the month of December 2022. The remaining amount of the over-execution comes from the better performance of the income taxes of natural and legal persons, of the previous year that were collected in installments until the end of February 2023, as well as from the better return from VAT this year.

Revenue refunds amounted to 2,129 million euros, increased by 390 million euros from the target (1,739 million euros), mainly due to the VAT refund, in the month of March, to the Administrator of Renewable Energy Sources and Guarantees (DAPEEP S.A.) amounting to approximately 220 million euros, resulting from revenues collected by DAPEEP and attributed to the State by the Temporary Mechanism for Returning Part of Next-Day Purchase Revenues.

The revenues of the Public Investment Budget amounted to 1.756 billion euros, increased by 341 million euros from the target (1.415 billion euros). The exact distribution between the revenue categories of the state budget will be carried out with the publication of the final bulletin.

In particular, in April 2023 the total net revenues of the state budget amounted to 4.199 billion euros, up by 216 million euros compared to the monthly target. Tax revenues amounted to €4,261 million, up €199 million or 4.9% on target. Revenue returns totaled €407 million, up €22 million from the target (€385 million).

The revenue of the Public Investment Budget amounted to 68 million euros, reduced by 2 million euros from the target (70 million euros).

Expenses

The State Budget expenditures for the period January – April 2023 amounted to 21.840 billion euros and are presented reduced by 535 million euros compared to the target (22.375 billion euros), which is included in the introductory report of the 2023 Budget, while they show an increase, in relation to the corresponding period of 2022, by 833 million euros, mainly due to the increased transfers of the regular budget by 881 million euros.

On the side of the Regular Budget, the payments are shown reduced compared to the target by 345 million euros. This development is mainly due to the deferral of payments for expenditure on equipment programs amounting to 838 million euros.

Notable events are the grant to the Information Society M.A.E. amounting to 502 million euros, to serve the needs of the Market Pass, as well as the return to the Energy Transition Fund of 367 million euros of surplus energy producers, for the period from October 1, 2021 to June 30, 2022. And the two aforementioned transfers were carried out by redistributing credits from the reserve to promote actions to deal with the energy crisis (credits under allocation).

Payments in the investment expenditure arm amounted to 2,811 million euros, showing an underperformance of 190 million euros. The expenditure of the PDE includes an amount of 52 million euros to service COVID-19 measures, with the most important of these, the reinforcement of health institutions with auxiliary staff to respond to the needs due to the COVID-19 pandemic in the Regions and the subsidy of existing small and medium enterprises of the retail industry, who maintain a physical store, for the development, upgrade and management of an online store.

Primary result of 2.434 surplus

More specifically, according to the provisional state budget execution data, on a modified cash basis, for the period January – April 2023, there is a deficit in the state budget balance amounting to 798million euros compared to a target for a deficit of 3.829 billion euros included for the corresponding period of 2023 in the introductory report of the 2023 Budget and a deficit of 3.316 billion euros for the corresponding period of 2022. The primary result was a surplus of 2.434 billion euros, against a target for a primary deficit of €869 million and a primary deficit of €799 million for the same period in 2022.