The overperformance of tax revenues continued in July, which means that the goals of the Stability Program are probably secured, while it is possible to create fiscal space for some -measured- benefits in view of the Prime Minister’s announcements at the TIF.

Specifically, tax revenues in the seven-month period January – July were 33.768 billion euros, increased by 2.347 billion euros or 7.5% against the target included in the introductory report of the 2023 budget.

As mentioned in report of “Kathimerini”, part of this increase, 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 overexecution 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, but also from the best performance in the collection of taxes of the current year.

In July in particular, tax revenues reached 6.554 billion euros, up by 193 million euros or 3% against the target. The primary result of the budget is also on a positive course. 7M was in surplus of €3.555bn, against a target for a primary surplus of €1.830bn – and a primary deficit of €1.161bn for the same period in 2022.

However, this result is not so much due to the income as to the reduced expenses of the period.

As far as revenues are concerned, although tax revenues were increased compared to the target, the net revenues of the state budget were reduced by 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 under-execution are the following: a) The price, amounting to 1.496 billion euros, was not collected for the concession of the right to use and operate the Egnatia Odos motorway and its three vertical road axes, for a period of 35 years, which had is expected to be collected during the month of June, since the relevant procedure for the approval of the contract is in progress. b) An installment from the Recovery and Resilience Fund amounting to 1.718 billion euros that was predicted to be collected in the month of July was not collected.

On the contrary, in the rest of the revenue 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.

State budget expenditures for the period January – July amounted to 38.583 billion euros, reduced by 1.423 million euros compared to the target. This is mainly due to the backward timing of equipment program expenditures.