Revenues from taxes in October showed a significant increase of 341 million or 7.4% compared to the monthly target and amounted to 4,963 million euros, according to the provisional execution data of the state budget, as announced recently.
Also, tax revenues amounted to 38,642 million euros, increased by 1,236 million euros or 3.3% against the target included in the explanatory report of the MTEF 2022-2025.
Deputy Minister of Finance Theodoros Skylakakis, commenting on the budget data, stressed: “October was a good month for tax revenues that increased by 341 million euros or 7.4% against the monthly target. It is clear that the economy is on a dynamic recovery trajectory, which is confirmed by the European Commission’s forecasts and is accompanied by a significant reduction in unemployment. Rises in fuel and raw material prices, which create significant problems during this period, should be tackled by companies with particular restraint in transferring the relevant costs to consumer prices, and taken into account in their decisions. that they have in front of them a period of dynamic growth in which we will enter from 2022 and in the coming years, which we must not in any case risk being dragged into the vicious circle of inflationary expectations “.
The relevant announcement of the Ministry of Finance states the following in detail:
According to the provisional data on the implementation of the state budget, on a modified cash basis, for the period January – October 2021, there is a deficit in the state budget of 11.522 million euros compared to a deficit target of 11.576 million euros included for the corresponding 2021 in the explanatory report of the MTEF 2022-2025 and a deficit of 13,451 million euros in the corresponding period of 2020. The primary result was a deficit of 7,204 million euros, against a target for a primary deficit of 7,272 million euros and a primary deficit of 9,065 million. for the same period in 2020.
The amount of net revenues of the state budget amounted to 44,131 million euros, showing a decrease of 338 million euros or 0.8% compared to the estimate for the corresponding period included in the explanatory report of the MTEF 2022-2025.
However, the target of the MTEF was the collection in October 2021, a tranche from the Recovery and Resilience Fund (RRF) of 1,718 million euros, which is postponed to next year. Excluding this, net income increased by € 1,380 million or 3.1% against the target despite reduced EDP revenues.
The total state budget revenues amounted to 47,944 million euros, reduced by 456 million euros or 0.9% against the target. Excluding the above amount from the RRF, total revenue is € 1,262 million higher than the target.
Revenues from taxes amounted to 38,642 million euros, increased by 1,236 million euros or 3.3% compared to the target included in the explanatory report of the MTEF 2022-2025. This excess is mainly due to the increased revenues of income tax of natural and legal persons related to the declarations of the tax year 2020 as well as the increased VAT revenues that are estimated to have come mainly from the increased tourist traffic.
The exact distribution between the categories of revenues of the state budget will be made with the issuance of the final bulletin.
Revenue recoveries amounted to € 3,812 million, down € 118 million from the target (€ 3,930 million).
Revenues from the Public Investment Budget (PIP) amounted to € 3,551 million, down € 491 million from the target.
In particular, in October 2021 the total net revenue of the state budget amounted to 4,681 million euros, reduced by 1,696 million euros compared to the monthly target because the tranche from the Recovery and Resilience Fund (RRF) amounted to 1,718 million euros initially projected to be collected in October 2021, eventually shifted in time to next year. Therefore, excluding this, net revenues show an increase of 22 million euros compared to the target included in the explanatory report of the MTEF 2022-2025.
Total state budget revenues amounted to € 5,174 million, down from the monthly target of € 1,606 million, but excluding the RRF-shifted installment above, total revenues increased by € 112 million over the target included in the explanatory report of the MTEF 2022-2025.
Tax revenue was € 4,963 million, up € 341 million or 7.4% from the monthly target, due to the same reasons given above on a cumulative basis.
Revenue returns for October 2021 amounted to 493 million euros, an increase of 90 million euros against the monthly target (403 million euros).
PDE revenues amounted to 54m euros, down by 194m euros from the monthly target.
The State Budget expenditures for the period January – October 2021 amounted to 55.653 million euros and are reduced by 392 million euros or 0.7% compared to the target (56.045 million euros), which is included in the explanatory report of the MTEF. 2022-2025.
In the part of the Regular Budget, there is an exceedance of the target in the category of transfers, which is mainly due to increased grants to OKA by 677 million euros.
In addition, payments intended to service the relevant contracts of the armaments programs of the Ministry of National Defense (category of acquisition of fixed assets) were accelerated. Compared to the initial target, they increased by 471 million euros.
Payments on investment expenditure decreased by € 479 million compared to the target.
The provisional picture of the main payments of the measures against the pandemic for the period January – October, is as follows:
(a) the cost of special purpose compensation due to the COVID-19 (employee) pandemic of EUR 1,959 million, paid by the Ministry of Labor and Social Affairs (category of transfers);
(b) a repayable advance of EUR 1,620 million from the category of transfers and EUR 1,108 million from the EDP;
c) the state compensation of landlords amounting to EUR 744 million, due to reduced rents they receive;
d) the grant to OPEC amounting to 225 million euros, for the repayment of loans affected by the pandemic;
(e) the support of small and micro-enterprises affected by COVID-19 in the Regions amounting to EUR 736 million from the EDP;
f) the subsidy of interest on loans to small and medium-sized enterprises amounting to EUR 117 million from the EDP;
(g) expenditure on the business guarantee fund of EUR 220 million from the EDP;
(h) the working capital subsidy to catering establishments for the supply of raw materials amounting to EUR 203 million from the PDE;
i) the public contribution for the repayment of business loans of affected borrowers amounting to 182 million euros from the EDP;
j) the working capital subsidy to tourism enterprises amounting to EUR 100 million from the EDP; and
k) the coverage of the insurance contributions to the e-EFKA during the implementation of the support measures of employers and employees, amounting to 703 million euros from the category of transfers.
The state budget expenditures for the period January – October 2021 are increased compared to the corresponding period of 2020 by 3,791 million euros, mainly due to the increased expenditures for measures against the pandemic and the increased payments of armaments programs in the regular budget. .
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