The state budget showed a primary surplus of 3.55 billion euros in the first 7 months of the yearsignificantly better than the target, thanks to lower spending, according to finance ministry data on Wednesday.

The government’s target was for a primary surplus – which excludes debt service costs and local government – ​​of €1.83bn for the January-July period. Net income came in at €37.14 billion, down €541 million, while total expenses came in at €38.58 billion, against a target of €40 billion..

In a statement, the Ministry of Finance states that the shortfall in revenue comes from “the non-collection of a price of 1.496 billion euros for the concession of the right to use and operate the Egnatia Odos highway… which was predicted to be collected in the month of June” , but also “the non-collection of an installment of 1.718 billion euros that was predicted to be collected during the month of July”.

According to the provisional data of execution of the state budget, on a modified cash basis, for the period January – July 2023, there is a deficit in the state budget balance of 1,438 million euros against a target for a deficit of 2,320 million euros which has been included for the corresponding period of 2023 in the introductory report of the 2023 Budget and a deficit of 4,585 million euros in the corresponding period of 2022. The primary result was a surplus of 3,555 million euros, against a target for a primary surplus of 1,830 million euros and primary deficit of 1,161 million euros for the same period in 2022.

The amount of net revenues of the state budget amounted to 37,145 million euros, showing a decrease of 541 million euros or 1.4% compared to the target included for the corresponding period in the introductory report of the 2023 Budget.

The reasons for this underperformance are as follows:

– The price, in the amount of 1,496 million euros for the concession of the right to use and operate the Egnatia Road motorway and its three vertical road axes, for a period of 35 years, which was predicted to be collected in the month of June, was not collected, since the relevant procedure for the approval of the contract is in progress.

– An installment from the Recovery and Resilience Fund amounting to 1,718 million euros that was predicted to be collected in the month of July was not collected.

On the contrary, in the rest of the income categories there was an over-execution mainly due to: (a) the increased tax revenues of the seven months and (b) the collection of an amount of 603 million euros from ANFAs, which was not foreseen in the introductory report of the 2023 Budget.

Tax revenues totaled €33,768m, up €2,347m or 7.5% on target which has been 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 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 best performance of the income taxes of individuals and legal entities, of the previous year collected in installments until the end of February 2023, as well as from the best performance in the collection of taxes of the current year.
Revenue refunds amounted to 3,947 million euros, increased by 636 million euros from the target (3,311 million euros), part of which is due to the VAT refund, during the month of March, to the Administrator of Renewable Energy Sources and Guarantees (DAPEEP A. E.) in the amount of 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 (PDE) amounted to 2,271 million euros, reduced by 534 million euros from the target (2,805 million euros).

The data for July

In particular, in July 2023 the total net revenues of the state budget amounted to 6,270 million euros, reduced by 1,747 million euros compared to the monthly target mainly due to the non-collection of an installment from the Recovery and Resilience Fund, which was predicted to be collected during the month of July.

Tax revenues amounted to €6,554 million, up €193 million or 3.0% on target.

Revenue returns totaled €559 million, up €50 million from the target (€509 million).

The revenues of the Public Investment Budget (PDE) amounted to 88 million euros, reduced by 32 million euros from the target (120 million euros).

The expenses

The expenses of the State Budget for the period January – July 2023 amounted to 38,583 million euros and are shown reduced by 1,423 million euros compared to the target (40,006 million euros), which is included in the introductory report of the 2023 Budget, while they are shown increased , in relation to the corresponding period of 2022, by 295 million euros, mainly due to increased interest payments by 1,552 million euros, taking into account countervailing changes in other categories of expenses.

In the section of the Regular Budget, the payments are shown reduced compared to the target by 1,085 million euros. This development is mainly due to the deferral of payments for expenditure on equipment programs amounting to 680 million euros.

Notable events are the grant to the Information Society M.A.E. amounting to 503 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 July 30, 2022, as well as this year’s Diesel heating subsidy payments of €100 million. All the aforementioned payments were made by reallocating appropriations from the reserve to promote actions to tackle the energy crisis (appropriations under allocation).

Payments in the investment expenditure segment amounted to 5,333 million euros, showing a deficit of 337 million euros. The expenditure of the PDE includes an amount of 83 million euros to service COVID-19 measures, the most important of which are the strengthening of health institutions with auxiliary staff to respond to the needs due to the COVID-19 pandemic in the Regions, the support of start-ups in the context of ElevateGreece, the creation of a network of nurses for the collection of samples of biological material and nursing assistance in suspected cases of coronavirus at home and the grant of existing small and medium-sized enterprises in the retail trade sector, which maintain a physical store, for the development, upgrade and management of electronic shop.