The state budget showed a primary surplus of 5.987 billion euros for the period January – September 2023, against a target for a surplus of 2.436 billion euros and also a surplus of 52 million in the same period last year. The excess over the target is mainly attributed to the additional collections from VAT as well as to the significant increase in income tax revenues, both for individuals and businesses

According to the data announced by the Ministry of National Economy and Finance, on a modified cash basis, for the period January – September 2023, the state budget shows a deficit in the balance of the state budget of 397 million euros against a target for a deficit of 2.704 billion euros which has been included for the corresponding period of 2023 in the introductory report of the 2023 Budget and a deficit of 4.221 billion euros for the corresponding period of 2022.

In the period January – September 2023, the amount of net revenues of the state budget amounted to 48,296 million euros, showing a slight increase of 23 million euros compared to the target 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 exploit the Egnatia Road motorway and its three vertical road axes, for a period of 35 years, which was predicted to be to be collected during the month of June, since the relevant procedure for the approval of the contract is ongoing and b) of the third tranche of 1,718 million euros from the Recovery and Resilience Fund (RAF), which was predicted to be collected during the month of September. 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 nine months, 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 53,281 million euros, increased by 583 million euros or 1.1% against the target.

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

1. Tax revenues amounted to 44,916 million euros, increased by 3,089 million euros or 7.4% compared to the target included in the introductory report of the 2023 Budget. Part of this increase, amounting to approximately 470 million euros, concerns to 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 17,201 million euros and are increased against the target by 779 million euros.

• The revenues of EFCs amounted to 5,192 million euros and are reduced compared to the target by 100 million euros.

• Real estate tax revenues amounted to 2,086 million euros and are 6 million euros short of the target.

• Income tax revenues amounted to 14,918 million euros and are higher than the target by 1,614 million euros. Of these, the Personal Income Tax is increased by 830 million euros and the Corporate Income Tax is increased by 569 million euros compared to the target.

2. The income of the “Social Contributions” category amounted to 43 million euros and is increased against the target by 1 million euros.

3. The revenues of the “Transfers” category amounted to 4,979 million euros, reduced by 2,133 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), as well as the reduced PDE revenues and despite the collection of 603 million euros from ANFAs, as mentioned above. Of the above collected amount of 4,979 million euros, an amount of 2,438 million euros concerns PDE revenues, which are reduced by 1,049 million euros compared to the target.

4. The revenues of the “Sales of goods and services” category amounted to 639 million euros, reduced by 1,603 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.

5. The income of the category “Other current income” amounted to 2,702 million euros, increased by 1,233 million euros compared to the target included in the introductory report of the Budget 2023, mainly due to increased income from reimbursements of expenses by 628 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 2,702 million euros, an amount of 263 million euros concerns PDE revenue, which is increased by 150 million euros compared to the target.

Revenue refunds amounted to 4,985 million euros, increased by 561 million euros from the target (4,424 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 2,701 million euros, reduced by 899 million euros from the target (3,600 million euros).

In particular, in September 2023 the total net revenues of the state budget amounted to 5,178 million euros, reduced by 39 million euros compared to the monthly target. The total revenues of the state budget amounted to 5,646 million euros, reduced against the monthly target by 250 million euros.

Specifically, the revenues per major category of the state budget for September 2023 are as follows:

1. Tax revenues amounted to 5,078 million euros, reduced by 255 million euros or 4.8% compared to the target, mainly due to the forecast that the amount related to the liquidation of the personal income tax will be collected in 3 bimonthly installments, during the months of July, September and November, in accordance with the legislation in force at the time of the filing of the 2023 Budget report. Instead, the new legislation stipulated that the tax be paid in 8 monthly installments, starting in July 2023.

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

• VAT revenues amounted to 1,713 million euros and are 26 million euros short of the target.

• The revenues of the EFFK amounted to 598 million euros and are reduced compared to the target by 40 million euros.

• Real estate tax revenues amounted to 148 million euros and are 17 million euros short of the target.

• Income tax revenues amounted to 2,065 million euros and are 96 million euros short of the target.

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

3. The revenues of the “Transfers” category amounted to 364 million euros, increased by 95 million euros compared to the target included in the introductory report of the 2023 Budget. An amount of 348 million euros concerns PDE revenues, which are increased by 95 million euros against the target.

4. The revenues of the “Sales of goods and services” category amounted to 49 million euros, reduced by 72 million euros compared to the target included in the introductory report of the 2023 Budget.

5. The revenues of the “Other current revenues” category amounted to 150 million euros, reduced by 18 million euros compared to the target included in the introductory report of the 2023 Budget. An amount of 1 million euros concerns PDE revenues, which are reduced by 6 million euros against the target.

Revenue returns totaled €468 million, down €212 million from the target (€679 million).

The total revenues of the Public Investment Budget (PDE) amounted to 349 million euros, increased by 89 million euros from the target (260 million euros).

The expenses of the State Budget for the period January – September 2023 amounted to 48,693 million euros and are shown reduced by 2,284 million euros compared to the target (50,977 million euros), which is included in the introductory report of the 2023 Budget. They are also increased , in relation to the corresponding period of 2022, by 449 million euros, mainly due to increased interest expenses by 2,096 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 1,165 million euros. This development is mainly due to the under-implementation of grants to OKA by 1,342 million euros.

Notable payments include: the grant to the Information Society M.A.E. in the amount of 755 million euros, to serve the needs of the Market Pass and its extension, 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 payments were covered by redistributing appropriations from the reserve to promote actions to tackle the energy crisis (appropriations under allocation).

Payments under the investment expenditure arm amounted to 6,568 million euros, showing a deficit of 1,119 million euros, due to the under-execution of the Recovery and Resilience Fund by 1,626 million euros. The expenditure of the PDE includes an amount of 98 million euros to service COVID-19 measures, the most important of which are the reinforcement 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.