According to the provisional data on the execution of the state budget, on a modified cash basis, for the period January – August 2023, there is a deficit in the balance of the state budget of 103 million euros against a target for a deficit of 2,426 million euros included for the corresponding period of 2023 in the introductory report of the 2023 Budget and a deficit of 4,105 million euros in the corresponding period of 2022.

The budget showed a primary surplus of 5.5 billion euros in the eight months of January – August when the target referred to a surplus of 2.3 billion euros with tax revenues appearing multiples of the target by 3.4 billion euros

The amount of net revenues of the state budget amounted to 43,105 million euros, showing an increase of 47 million euros or 0.1% against the target which has been included for the corresponding period in the introductory report of the 2023 Budget despite the reduced PDE revenues, as well as the non-collection of: a) the price, amounting to 1,496 million euros for granting the right to use and operate the Egnatia Road motorway and three of its vertical road axes, for a period of 35 years, which was predicted to be collected in the month of June, since the relevant procedure for the approval of the contract is ongoing, and b) the third installment of 1,718 million euros from the Recovery Fund and Durability that was predicted to be collected during the month of August. On the contrary, in the remaining revenue categories there was an over-execution mainly due to the increased tax revenues of the eight month, as well as the collection of an amount of 603 million euros from ANFAs, which were not foreseen in the 2023 Budget.

Tax revenues totaled €39,911m, up €3,416m or 9.4% 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 previous year’s personal and corporate income taxes collected in installments until the end of February 2023, as well as the best performance in the collection of the current year’s taxes.

Revenue returns totaled €4,517m, up €772m from target (3,745 million euros), part of which is due to the refund of VAT, during the month of March, to the Administrator of Renewable Energy Sources and Guarantees (DAPEEP S.A.) in the amount of approximately 220 million euros, resulting from revenues collected by the DAPEEP and attributed to the State by the Temporary Mechanism for Returning Part of Next Day Market Revenues.

The revenues of the Public Investment Budget (PDE) amounted to 2,350 million euros, reduced by 990 million euros from the target (3,340 million euros).

The exact distribution between the revenue categories of the state budget will be carried out with the publication of the final bulletin.

Analytically:

In particular, in August 2023 the total net revenues of the state budget amounted to 5,956 million euros, increased by 585 million euros compared to the monthly target.

Tax revenues amounted to 6,243 million euros, increased by 1,170 million euros or 23.1% against the target mainly due to the extension given to the deadline for submitting the tax returns of natural and legal persons and the consequent extension to the payment of the first and of the second installment of income tax by September 4.

Revenue returns totaled €571 million, up €136 million from the target (€434 million).

The revenue of the Public Investment Budget (PDE) amounted to 79 million euros, reduced by 456 million euros from the target (535 million euros).

The expenses of the State Budget for the period January – August 2023 amounted to 43,207 million euros and are shown reduced by 2,276 million euros compared to the target (45,483 million euros), which is included in the introductory report of the 2023 Budget. They are also reduced , in relation to the corresponding period of 2022, by 130 million euros, mainly due to the deferral of grants to OKAs by 1,084 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 1,487 million euros. This development is mainly due to the under-implementation of grants to OKA by 1,284 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 August 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 arm amounted to 5,842 million euros, showing a shortfall of 789 million euros, due to the under-execution of the Recovery and Resilience Fund by 1,381 million euros. The expenditure of the PDE includes an amount of 91 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 framework of Elevate Greece, 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 sector, which maintain a physical store, for the development, upgrading and management online store.

The Ministry of National Economy and Finance, for the correct interpretation of the above data, clarifies the following:

As reflected in the Budget execution sheet, tax revenues on a cash basis in the January-August period appear increased by 3,416 million euros, however (a) part of this increase, amounting to approximately 470 million euros, concerns the extension of the payment deadline of traffic fees until the end of February 2023 and is counted fiscally in the year 2022, (b) also an amount of 367 million euros concerns the performance of the income taxes of natural and legal persons of the previous year collected in installments