Budget turnaround: Primary surplus in 8 months instead of primary deficit

Reversal of the budget. Primary surplus of 10 million euros, against a primary deficit target of 5.9 billion euros, shows the budget at the end of August against the background of a rally in revenues after the excellent performance of tourism. Tax revenues, according to the data of the General Accounting Office of the State, have increased in the eight months by 5.6 billion euros, or by 18.6% in relation to the target. The increase in revenue also has seasonal characteristics due to changes in the payment of taxes (eg road tax, ENFIA prepayment – refundable by many citizens).

According to the figures made public by Th. Skylakakis, a jump in net revenues of 39,222 million euros is recorded, showing an increase of 5,685 million euros or 17% compared to the estimate and tax revenues at +18.6% or 5,621 billion euros .

Analytically:

The total revenues of the state budget amounted to 42,797 million euros, increased by 6,388 million euros or 17.5% against the target. Tax revenues amounted to 35,844 million euros, increased by 5,621 million euros or 18.6% compared to the target included in the introductory report of the 2022 Budget.

This overperformance is due to:

a) to the best performance of the previous year’s taxes collected in installments until the end of February 2022,
b) in the extension of the deadline for the payment of traffic fees until the end of February 2022,
c) to the best performance in the collection of the current year’s taxes and
d) in the collection by the end of August 2022 of four of the eight installments of ENFIA which were predicted to be collected from September to December of this year.
The exact distribution between the revenue categories of the state budget will be carried out with the publication of the final bulletin. Revenue returns amounted to €3,575 million, up €704 million from the target (€2,872 million). The total revenue of the Public Investment Budget (PDE) amounted to 1,921 million euros, reduced by 849 million euros from the target (2,770 million euros).

For August 2022, the total net revenue of the state budget amounted to 5,519 million euros, increased by 882 million euros compared to the monthly target. The total revenues of the state budget amounted to 5,945 million euros, increased by 827 million euros compared to the estimate for the corresponding period included in the introductory report of the 2022 Budget.

Tax revenues amounted to 5,695 million euros, up by 1,401 million euros or 32.6% against the target, due to the collection of the fourth tranche of the ENFIA which was expected to be collected in December but mainly due to the deadline payment of the first and second installments of income tax at the end of August.

Revenue returns amounted to €426 million, down €55 million from the target (€481 million). The total revenues of the Public Investment Budget (PDE) amounted to 143 million euros, reduced by 467 million euros compared to the target (610 million euros).

The expenses

The expenses of the State Budget for the period January – August 2022 amounted to 43,336 million euros and are presented reduced by 193 million euros compared to the target (43,529 million euros), which is included in the introductory report of the 2022 Budget.

In the part of the Regular Budget, the payments are shown reduced compared to the target by 865 million euros. This development is mainly due to the postponement of the payments of the equipment programs by 803 million euros. Payments for collateral forfeitures are also reduced by 438 million euros. On the contrary, increased payments in relation to the target are observed mainly in grants to OKA (by 323 million euros).

Payments in the investment expenditure arm amounted to 6,193 million euros, showing an increase of 672 million euros compared to the target of 5,521 million euros.

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

• the support of small and very small businesses affected by COVID-19 in the Regions amounting to 160 million euros from the PDE,
• the public contribution for the repayment of business loans of affected borrowers amounting to 83 million euros from the PDE,
• the working capital subsidy for tourism businesses amounting to 42 million euros from the PDE,
• the support of health institutions with auxiliary staff in the Regions amounting to 62 million euros from the PDE,
• the emergency grant of entertainment businesses, gyms, dance schools, etc. affected by the pandemic. amounting to 44 million euros, from the PDE,
• the special purpose compensation expense of €149 million, which was paid by the Ministry of Labor and Social Affairs (transfer category);
• the additional grants to EOPYY, in the amount of 100 million euros and to hospitals and DYPE, in the amount of 91 million euros, as well as the purchase of vaccines in the amount of 269 million euros,
• the additional grant to DYPA (formerly OAED) in the amount of 400 million euros to cover the loss of revenue due to the reduction of employees’ insurance contributions and the grant to e-EFKA in the amount of 150 million euros to cover the loss of revenue from the reduction of in favor of the DYPA of collected contributions and
• the state compensation of landlords amounting to 49 million euros, due to reduced rents they receive.

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

a) a grant to OPEKA of 207 million euros, which is broken down into the following sub-parts: 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 the uninsured overages,

b) a grant to the e-EFKA of 135 million euros for the emergency 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 fuel passes (fuel pass) of 301 million euros and for the support due to increased electricity bills (power pass) of 280 million euros,

d) grant to OPEKEPE 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) subsidy for diesel traffic in the amount of 102 million euros.

For the period of January – August 2022, the expenses of the state budget are shown reduced, compared to the corresponding period of 2021, by 1,869 million euros.

Skylakakis statement

“Tax revenues also significantly outperformed in August as they recorded an increase of 1,401 million euros or 32.6% against the target, due to the (pre)collection of the fourth installment of ENFIA and the expiry of the deadline for the payment of the first and second installments ” commented Deputy Finance Minister Theodoros Skylakakis.

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