The execution of the budget for the period January – May 2023 shows a primary surplus of 2.3 billion euros against a target for a primary deficit of 1.4 billion euros, according to a relevant announcement by the Ministry of Finance.

This resulted from revenue exceeding the target, mainly due to increased VAT revenue, but also Income Tax revenue.

The overrun in the 5 months is, compared to the target, at 1.917 billion euros or 9.2%.

In detail, the figures are as follows:

According to the execution data of the state budget, on a modified cash basis, for the period January – May 2023, there is a deficit in the state budget balance of 1,116 million euros against a target for a deficit of 4,446 million euros that has been included for the corresponding period of 2023 in the introductory report of the 2023 Budget and a deficit of 4,066 million euros in the corresponding period of 2022. The primary result was a surplus of 2,300 million euros, against a target of a primary deficit of 1,396 million euros and a primary deficit of 1,487 million euros for the same period in 2022.

The amount of net revenues of the state budget amounted to 26,252 million euros, showing an increase of 2,948 million euros or 12.6% compared to the target included for the corresponding period in the introductory report of the 2023 Budget. This overperformance is mainly due to: (a) to the increased tax revenues of the five months, (b) to 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) to the increased revenues of the PDE.

The total revenues of the state budget amounted to 28,958 million euros, increased by 3,407 million euros or 13.3% against the target.

More specifically, the revenues of the major categories of the state budget are as follows:

I. The revenues of the “Taxes” category amounted to 22,866 million euros, increased by 1,917 million euros or 9.2% compared to the target included in the introductory report of the 2023 Budget. Part of this increase, amounting to 470 million euros approximately, it concerns the extension of the deadline for the payment of traffic fees 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 best performance of the current year’s VAT.

In particular, the following are observed for the main taxes of this category:
* VAT revenues amounted to 9,417 million euros and are increased against the target by 516 million euros.
* The revenues of the Social Insurance Institutions amounted to 2,633 million euros and are reduced compared to the target by 73 million euros.
* Real estate tax revenues amounted to 1,306 million euros and are increased against the target by 59 million euros.
* Income tax revenues amounted to 6,158 million euros and are higher than the target by 633 million euros.

II. The income of the “Social Contributions” category amounted to 24 million euros and is increased against the target by 1 million euros.

III. The revenues of the “Transfers” category amounted to 4,167 million euros, increased by 721 million euros compared to the target included in the report of the Budget 2023, mainly due to the collection of 603 million euros from ANFAs, as mentioned above. Of the above collected amount of 4,167 million euros, an amount of 1,698 million euros concerns PDE revenue, which is increased by 71 million euros compared to the target.

IV. The revenue of the “Sales of goods and services” category amounted to 373 million euros, increased by 11 million euros compared to the target included in the introductory report of the 2023 Budget.

V. The revenues of the “Other current revenues” category amounted to 1,529 million euros, increased by 758 million euros compared to the target included in the introductory report of the 2023 Budget. Of these, an amount of 254 million euros concerns PDE revenues, the which are increased by 172 million euros compared to the target.

Revenue refunds amounted to 2,707 million euros, increased by 459 million euros from the target (2,247 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.) of an amount 220 million euros approximately, resulting from revenues collected by DAPEEP and attributed to the State by the Temporary Mechanism for Returning Part of Next Day Purchase Revenues.

The total revenue of the Public Investment Budget (PDE) amounted to 1,953 million euros, increased by 243 million euros from the target (1,710 million euros).

In particular, in May 2023 the total net revenues of the state budget amounted to 5,195 million euros, increased by 436 million euros against the monthly target, while the total revenues of the state budget amounted to 5,774 million euros, increased against the monthly target by 506 million euros.

More specifically, the revenues per major category of the state budget for May 2023 are as follows:

I. The income of the “Taxes” category amounted to 5,063 million euros, increased by 350 million euros or 7.4% against the target.
In particular, the following are observed for the main taxes of this category:
* VAT revenues amounted to 1,843 million euros and are increased against the target by 36 million euros.
* The revenues of the Social Insurance Institutions amounted to 601 million euros and are increased against the target by 7 million euros.
* Real estate tax revenues amounted to 953 million euros and are increased against the target by 101 million euros.
* Income tax revenues amounted to 1,167 million euros and are higher than the target by 160 million euros.

II. The income of the “Social Contributions” category amounted to 5 million euros in accordance with the target.

III. The revenues of the “Transfers” category amounted to 209 million euros, reduced by 90 million euros compared to the target included in the introductory report of the Budget 2023. An amount of 194 million euros concerns PDE revenues, which are reduced by 89 million. euros against the target.

IV. The revenue of the “Sales of goods and services” category amounted to 89 million euros, reduced by 7 million euros against the target included in the introductory report of the 2023 Budget.

V. The revenues of the “Other current revenues” category amounted to 409 million euros, increased by 252 million euros compared to the target included in the introductory report of the 2023 Budget, mainly due to the collection of 215 million euros by OPEKEPE of which an amount of 178 million Euros concerns a refund from the E.U. due to cancellation of fines that had been imposed.

An amount of 3 million euros concerns PDE revenues, which are reduced by 10 million euros compared to the target.

Revenue returns totaled €579 million, up €70 million from the target (€509 million).

The total revenue of the Public Investment Budget (PDE) amounted to 197 million euros, reduced by 98 million euros from the target (295 million euros).

The expenses of the State Budget for the period January – May 2023 amounted to 27,368 million euros and are shown reduced by 383 million euros compared to the target (27,751 million euros), which is included in the introductory report of the 2023 Budget, while they are shown increased , compared to the corresponding period of 2022, by 1,015 million euros, mainly due to increased interest payments by 825 million euros.

In the section of the Regular Budget, the payments are shown reduced compared to the target by 470 million euros. This development is mainly due to the deferral of payments for equipment program expenditures amounting to 590 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, 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, as well as this year’s Diesel heating subsidy payments of €100 million. All the aforementioned movements 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 segment amounted to 3,877 million euros, exceeding the target amounting to 87 million euros. The expenditure of the PDE includes an amount of 62 million euros to serve 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, the subsidy of existing small and medium enterprises of the retail trade sector, who maintain a physical store, for the development, upgrade and management of an online store and the support of start-ups within the framework of Elevate Greece.