A primary surplus of €5.596 billion, against a target of a primary surplus of €2.314 billion and a primary surplus of €19 million for the same period in 2022, the January-August 2023 state budget shows, according to the final figures released from the Ministry of Finance.

According to them on a modified cash basis, for the period January – August 2023, there is a deficit in the state budget balance of 92 million euros against a target for a deficit of 2.426 billion euros included for the corresponding period of 2023 in the introductory report of Budget 2023 and a deficit of 4.105 billion euros in the corresponding period of 2022.

In detail, the announcement of the Ministry of National Economy and Finance states the following:

In the period January – August 2023, the amount of net revenues of the state budget amounted to 43,118 million euros, showing an increase of 61 million euros or 0.1% compared to the target included for the corresponding period in the introductory report of the 2023 Budget despite reduced PDE revenues, as well as non-collection:

a) the price, in the amount of 1,496 million euros for the granting of the right to use and exploit the Egnatia Odos motorway and its three 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 in progress,

and b) the third tranche of €1,718 million from the Recovery and Resilience Fund (Resilience Fund), which was expected to be received in the month of August. On the contrary, in the rest of the revenue categories there was an over-execution, which is 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.

The total revenues of the state budget amounted to 47,636 million euros, increased by 833 million euros or 1.8% against the target.

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

1. Tax revenues amounted to 39,838 million euros, increased by 3,344 million euros or 9.2% compared to the target 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 better performance of the income taxes of individuals and legal entities of the previous year which collected in installments until the end of February 2023, as well as from the best performance in the collection of taxes this year.

In particular, the following are observed for the main taxes of this category:

  • VAT revenues amounted to 15,488 million euros and are increased against the target by 805 million euros.
  • The revenues of the EFCs amounted to 4,594 million euros and are reduced compared to the target by 60 million euros.
  • Real estate tax revenues amounted to 1,938 million euros and are up against the target by 10 million euros.
  • Income tax revenues amounted to 12,853 million euros and are higher than the target by 1,710 million euros.

1. The income of the “Social Contributions” category amounted to 39 million euros and is increased against the target by 1 million euros.

2. The revenues of the “Transfers” category amounted to 4,615 million euros, reduced by 2,228 million euros compared to the target included in the introductory report of the 2023 Budget, mainly due to the non-collection of the third installment of 1,718 million euros from Recovery and Resilience Fund (TAA), but also the reduced PDE revenues and despite the collection of 603 million euros from ANFAs, as mentioned above. Of the above collected amount of 4,615 million euros, an amount of 2,090 million euros concerns PDE revenues, which are reduced by 1,145 million euros compared to the target.

3. The revenues of the “Sales of goods and services” category amounted to 590 million euros, reduced by 1,531 million euros compared to the target included in the introductory report of the 2023 Budget, mainly due to the non-collection during the month of June, of the price amounting to 1,496 million euros for the Egnatia Odos highway, as mentioned above.

4. The income of the category “Other current income” amounted to 2,553 million euros, increased by 1,251 million euros compared to the target included in the introductory report of the Budget 2023, mainly due to the increased income from reimbursements of expenses by 649 million euros and from interest on deposits at the Bank of Greece, by 260 million euros in the month of June. Of the above collected amount of 2,553 million euros, an amount of 262 million euros concerns PDE revenues, which are increased by 157 million euros compared to the target.

Revenue refunds amounted to 4,517 million euros, increased by 772 million euros from the target (3,745 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 total revenue of the Public Investment Budget (PDE) amounted to 2,352 million euros, reduced by 988 million euros from the target (3,340 million euros).

In particular, in August 2023 the total net revenues of the state budget amounted to 5,970 million euros, increased by 599 million euros compared to the monthly target. The total revenues of the state budget amounted to 6,541 million euros, increased against the monthly target by 735 million euros.

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

1. Tax revenues amounted to 6,171 million euros, increased by 1,098 million euros or 21.6% compared to 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 in the payment of of the first and second installments of income tax by September 4.

In particular, the following are observed for the main taxes of this category:

  • VAT revenues amounted to 2,122 million euros and are increased against the target by 173 million euros.
  • The revenues of the Social Insurance Institutions amounted to 699 million euros and are increased compared to the target by 16 million euros.
  • Real estate tax revenues amounted to 159 million euros and are 15 million euros short of the target.
  • Income tax revenues amounted to 2,741 million euros and are increased against the target by 885 million euros, of which an amount of 592 million euros comes from the Corporate Income Tax.

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

2. The revenues of the “Transfers” category amounted to 89 million euros, reduced by 460 million euros compared to the target included in the introductory report of the 2023 Budget. An amount of 78 million euros concerns PDE revenues, which are reduced by 454 million euros against the target.

3. The revenues of the “Sales of goods and services” category amounted to 53 million euros, reduced by 6 million euros compared to the target included in the introductory report of the 2023 Budget.

4. The income of the “Other current income” category amounted to 222 million euros, increased by 103 million euros compared to the target included in the introductory report of the 2023 Budget. An amount of 2 million euros concerns PDE income, which is reduced by 1 million euros against the target.

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

The total revenues of the Public Investment Budget (PIB) amounted to 80 million euros, reduced by 455 million euros from the target (535 million euros).

The State Budget expenditures for the period January – August 2023 amounted to 43,210 million euros and are shown reduced by 2,273 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 127 million euros, mainly due to the postponement of the payment 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 1,484 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.