The state budget shows a primary surplus of 7.567 billion euros, against a target of 3.316 billion euros, for the period January – August 2024, according to an announcement by the Ministry of National Economy and Finance.

For the same period, tax revenues stood at €43bn, up €1.9bn or 4.6% on target.

The positive revenue trend is due to better collections from income tax and VAT.

In detail, the announcement of the Ministry of Finance is as follows:

According to the state budget execution data, on a modified cash basis, for the period January – August 2024, there is a surplus in the state budget balance amounting to 1,044 million euros against a target for a deficit of 2,774 million euros that has been included for the corresponding period of 2024 in the introductory report of the 2024 Budget and a deficit of 92 million euros in the corresponding period of 2023. The primary result on a modified cash basis was a surplus of 7,567 million euros, against a target for a primary surplus of 3,316 million euros and a primary surplus of 5,596 million .euro for the same period in 2023.

It is noted that part of the difference in tax revenue collections amounting to 647 million euros is counted in the fiscal result of the year 2023, while an amount related to the deferral of transfer payments to OKA in the amount of 1,854 million euros and the costs for equipment programs in the amount of 634 million euros ( i.e. a total of 2,488 million euros), does not affect the result in fiscal terms.

Excluding the above amounts, exceeding the target in the primary surplus of the state budget for the period January-August amounts to 1,116 million euros.

Therefore the primary result in fiscal terms differs from the result in cash terms. It should be noted that the above refers to the primary result of the Central Administration and not to the whole of the General Government, which also includes the fiscal results of Legal Entities and the sub-sectors of OTAs and OKAs.

In addition, the above concerns the comparison in relation to the objectives of the introductory report of the 2024 Budget. During the preparation of the Stability Program in April 2024, it has already been taken into account that an amount of 1,238 million euros on a budgetary basis derived from an updated forecast of of tax revenues of 2024, is directed to increased expenses of the regular Budget of the General Government bodies, as well as of the National branch of the Public Investment Program.

In the period January – August 2024, the amount of net revenues of the state budget amounted to 45,133 million euros, presenting an increase of 228 million euros or 0.51% compared to the target included for the corresponding period in the introductory report of the 2024 Budget , even though the objectives of the report included: a) the collection in March of an amount of 1,797 million euros from the Recovery and Resilience Fund (TAA), the majority of which, i.e. the amount of 1,687 million euros, had been collected in December 2023 and an additional amount of 159 million euros was collected in January 2024 and b) the collection in June of a price of 1,350 million euros from the service concession agreement for the financing, operation, maintenance and exploitation of the Egnatia Odos motorway and the three (3) vertical road axes, which was signed on 29.03.2024. The next steps in the process until the payment of the price are expected to be completed in the coming months.

The total revenues of the state budget amounted to 49,631 million euros, increased by 269 million euros or 0.5% against the target.

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

I. The revenues of the “Taxes” category amounted to 43,002 million euros, increased by 1,899 million euros or 4.6% compared to the target included in the introductory report of the Budget 2024. This overperformance comes from the better performance of taxes of income of natural and legal persons of the previous year collected in installments until the end of February 2024 (it is noted that an estimated amount of 647 million euros is counted in the fiscal result of the year 2023), as well as the best performance in the collection of taxes of the current year. Therefore, the excess of tax revenue that is counted fiscally in the year 2024 amounts to 1,252 million euros.

It is noted that the above concerns the comparison in relation to the objectives of the Budget. During the preparation of the Stability Program in April 2024, an increase in tax revenues of 1,238 million euros has already been taken into account, which is directed to increased expenses for the year 2024 of the regular Budget of the General Government bodies, as well as the National arm of the Public Investment Program , as reflected in the Stability Program.

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

* VAT revenues amounted to 16,796 million euros and are increased against the target by 532 million euros.

* The revenues of the Social Insurance Institutions amounted to 4,744 million euros and are increased against the target by 132 million euros.

* Real estate tax revenues amounted to 1,941 million euros and are increased against the target by 48 million euros.

* Income tax revenues amounted to 14,938 million euros and are increased against the target by 1,197 million euros, of which Personal Income Tax is increased by 384 million euros, Corporate Income Tax is increased by 613 million. euros and Other Income Taxes increased by 200 million euros compared to the target.

II. The income of the “Social Contributions” category amounted to 41 million euros, and is increased against the target by 2 million euros.

III. The revenues of the “Transfers” category amounted to 3,189 million euros, reduced by 1,233 million euros compared to the target included in the introductory report of the 2024 Budget mainly due to: (a) the collection in December 2023 of the amount of 1,687 million; euros from the Recovery and Resilience Fund (Resilience Fund), while an amount of 159 million euros was collected in January 2024, against a target of 1,797 million euros that was initially predicted to be collected in the month of March 2024 and (b) the increased PDE revenues, by 257 million euros, against the target. In particular, of the above collected amount of 3,189 million euros, an amount of 2,746 million euros concerns PDE revenues.

IV. The revenue of the “Sales of goods and services” category amounted to 672 million euros, reduced by 1,323 million euros compared to the target included in the report of Budget 2024. The observed lag is due to the fact that the target of the report included the collection in June of the price from the concession contract for the Egnatia Odos highway and its three (3) vertical road axes, amounting to 1,350 million euros, which is expected to be collected in the following months, as mentioned above.

V. The income of the category “Other current income” amounted to 2,696 million euros, increased by 892 million euros compared to the target included in the introductory report of the Budget 2024, mainly due to the increased income from reimbursements of expenses, by 412 million. euro. It should be noted that of the above collected amount of 2,696 million euros, an amount of 402 million euros concerns PDE revenues, which are increased by 313 million euros compared to the target.

VI. The revenue of the category “Sales of fixed assets” amounted to 33 million euros, against a target of 1 million euros.

Revenue returns amounted to €4,499 million, up €41 million from the target (€4,457 million).

The total revenues of the Public Investment Program (PIP) amounted to 3,148 million euros, increased by 570 million euros from the target (2,578 million euros).

In particular, in August 2024 the total net revenues of the state budget amounted to 5,946 million euros, reduced by 635 million euros compared to the monthly target.

More specifically, the revenues per major category of the state budget for August 2024 are as follows:

I. The revenues of the “Taxes” category amounted to 6,136 million euros, reduced by 291 million euros or 4.5% compared to the Budget target, which is mainly related to the increased collections of income tax, legal entities of the previous month, linked to the due date of tax returns.

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

* VAT revenues amounted to 2,215 million euros and are 13 million euros short of the target.

* The revenues of the EFCs amounted to 698 million euros and are reduced compared to the target by 4 million euros.

* Real estate tax revenues amounted to 132 million euros and are 25 million euros short of the target.

* Income tax revenues amounted to 2,653 million euros and are reduced compared to the target by 207 million euros, of which 199 million euros concern the income tax of legal entities and 14 million euros the income tax of natural persons, while the Other Income Taxes are increased by 6 million euros compared to the target.

II. The revenues of the “Social Contributions” category amounted to 5 million euros, in line with the target.

III. The revenues of the “Transfers” category amounted to 104 million euros, reduced by 423 million euros compared to the target included in the introductory report of the Budget 2024. An amount of 94 million euros concerns PDE revenues, which are reduced by 422 million. euros against the target.

IV. The revenue of the “Sales of goods and services” category amounted to 89 million euros, increased by 28 million euros compared to the target included in the introductory report of the 2024 Budget.

V. The revenues of the “Other current revenues” category amounted to 212 million euros, increased by 88 million euros compared to the target included in the report of the Budget 2024. An amount of 50 million euros concerns PDE revenues, which are increased by 48 million euros against the target.

Revenue returns totaled €600 million, up €37 million from the target (€563 million).

The total revenues of the Public Investment Budget (PDE) amounted to 145 million euros, reduced by 374 million euros from the target (519 million euros).

The expenses of the State Budget for the period January – August 2024 amounted to 44,089 million euros and are presented reduced by 3,590 million euros compared to the target (47,679 million euros), which is included in the introductory report of the 2024 Budget. They are also increased , compared to the corresponding period of 2023, by 878 million euros, mainly due to the increase in interest payments.

In the section of the Regular Budget, the payments are shown reduced compared to the target by 3,291 million euros. This development is mainly due to the deferral of transfer payments to OKA by 1,854 million euros, as well as the costs related to equipment programs amounting to 634 million euros, which do not affect the result in fiscal terms. Conversely, i.e. incrementally in relation to the target, interest payments to service the public debt moved by 465 million euros.

Notable transfer payments can be mentioned: the payment of 130 million euros by the Ministry of Rural Development and Food to ELGA for the compensation of agricultural holdings affected by flooding due to the DANIEL-ELIAS disasters in September 2023 as well as for related land improvement projects, the a 225 million euro grant from the Ministry of Infrastructure and Transport to transport agencies (OASA, OASTH and OSE), a 276 million euro grant from the Ministry of Health to the National Central Health Procurement Authority (EKAPY) to cover the cost of supplying medicines for needs of the NHS and G.N. hospitals. Papageorgiou and the grant of 98 million euros to the Higher Educational Institutions (HEIs) to cover their operational costs.

Payments in the investment expenditure arm amounted to 6,549 million euros, showing a shortfall of 299 million euros in relation to the target.