Primary surplus for the budget in 8 months!

Primary surplus for the budget in 8 months!
Primary surplus for the budget in 8 months!

A primary surplus of 10 million euros, against a target for a primary deficit of 5.9 billion euros, the budget achieved in the first eight months of the year, making the big turnaround after the excellent performance of revenues.

According to the data released by Th. Skylakakis, recorded a jump in net income of 39,222 million euros, showing an increase of 5,685 million euros or 17% against the estimate and tax revenues at +18.6% or 5,621 billion euros.

Competent sources estimate, however, that at the end of the year the primary deficit will be 2% as predicted and the primary surplus of 10 million euros constitutes situational development.

“Tax revenues also significantly outperformed in August as they recorded an increase of 1,401 million euros or 32.6% against the target, due to the (pre)collection of the fourth installment of ENFIA and the expiry of the deadline for the payment of the first and second installments of income tax”the Deputy Minister of Finance points out.

“This performance is compatible with the high growth rates recorded by the economy in 2022, while the advance collection of revenues in the following months adds security to the implemented fiscal policy, in a particularly uncertain period in relation to international economic developments.”

Analytically:

The total revenues of the state budget amounted to 42,797 million euros, increased by 6,388 million euros or 17.5% against the target. The tax revenue amounted to 35,844 million euros, increased by 5,621 million euros or 18.6% compared to the target included in the introductory report of the 2022 Budget.

This overperformance is due to:

  • a) to the best performance of the previous year’s taxes collected in installments until the end of February 2022,
  • b) in the extension of the deadline for the payment of traffic fees until the end of February 2022,
  • c) to the best performance in the collection of the current year’s taxes and
  • d) in the collection until the end of August 2022 of four of the eight installments of ENFIA, which were predicted to be collected from September to December of this year.

The revenue returns amounted to 3,575 million euros, increased by 704 million euros from the target (2,872 million euros). The total revenue of the Public Investment Budget (PDE) amounted to 1,921 million euros, reduced by 849 million euros from the target (2,770 million euros).

For August 2022, the total net revenues of the state budget amounted to 5,519 million euros, increased by 882 million euros compared to the monthly target. The total revenues of the state budget amounted to 5,945 million euros, increased by 827 million euros compared to the estimate for the corresponding period included in the introductory report of the 2022 Budget.

Tax revenues amounted to 5,695 million euros, increased by 1,401 million euros or 32.6% against the target, due to the collection of the fourth installment of ENFIA which was predicted to be collected in the month of December, but mainly due to the expiry of the deadline for the payment of the first and second installments of the income tax at the end of August.

Revenue returns amounted to €426 million, down €55 million from the target (€481 million). The total revenues of the Public Investment Budget (PDE) amounted to 143 million euros, reduced by 467 million euros compared to the target (610 million euros).

The expenses

The State Budget expenditures for the period January – August 2022 amounted to 43,336 million euros and are shown reduced by 193 million euros against the target (43,529 million euros), which has been included in the introductory report of the 2022 Budget.

In the Regular Budget section, payments are shown to be 865 million euros short of the target. This development is mainly due to the postponement of the payments of the equipment programs by 803 million euros. Payments for forfeitures of guarantees by 438 million euros. On the contrary, increased payments in relation to the target are observed mainly in grants to OKA (by 323 million euros).

Payments in the investment expenditure arm amounted to 6,193 million euros, showing an increase of 672 million euros compared to the target of 5,521 million euros.

The provisional picture of the main payments of expenditure on fiscal measures taken due to the pandemic for the period January – August is as follows:

  • the support of small and very small businesses affected by Covid-19 in the Regions amounting to 160 million euros from the PDE,
  • the public contribution for the repayment of business loans of affected borrowers amounting to 83 million euros from the PDE,
  • the subsidy working capital in tourism businesses amounting to 42 million euros from the PDE,
  • the support of health institutions with auxiliary staff in the Regions amounting to 62 million euros from the PDE,
  • the emergency grant of entertainment businesses, gyms, dance schools, etc. affected by the pandemic. amounting to 44 million euros, from the PDE,
  • the expense special purpose compensation amounting to 149 million euros, which was paid by the Ministry of Labor and Social Affairs (category of transfers),
  • the additional grants to EOPYY, in the amount of 100 million euros and to hospitals and DYPE, in the amount of 91 million euros, as well as the purchase of vaccines in the amount of 269 million euros,
  • the additional grant to DOUBLE (formerly OAED) in the amount of 400 million euros to cover the loss of revenue due to a reduction in employee insurance contributions and the grant to the e-EFKA in the amount of 150 million euros to cover the loss of revenue from the reduction of contributions collected in favor of DYPA and
  • the state compensation of landlords amounting to 49 million euros, due to reduced rents they receive.

The provisional picture of the main payments of costs for the measures to deal with it energy crisisconcerning the Central Administration, for the period January – August, is as follows:

a) grant to OPECA amounting to 207 million euros, which is broken down into the following sub-parts: 120 million euros for the extraordinary installment of the child allowance, 46 million euros for the payment of the increase in the income support of beneficiaries of the minimum guaranteed income, 33 million for the extraordinary financial support for the disabled and 7 million euros for increasing the pension of uninsured senior citizens,

b) grant to e-EFKA amounting to 135 million euros for the extraordinary financial support of vulnerable pensioners,

c) grant to Information Society for the support of natural persons and freelancers in order to deal with the increase in the cost of motor fuels (fuel pass) amounting to 301 million euros and for the support due to increased electricity bills (power pass) amounting to 280 million euros,

d) grant to OKAY amounting to 50 million euros to deal with the consequences in Greek livestock farming due to international developments,

e) special purpose compensation to support TAXI operators and drivers amounting to 5 million euros and

f) subsidy of internal combustion oil (diesel) traffic amounting to 102 million euros.

For the period of January – August 2022, the expenses of the state budget are presented reduced, compared to the corresponding period of 2021, by 1,869 million euros.

* See the monthly bulletin and the Ministry of Finance announcement, in the “Supporting Material” column


The article is in Greek

Tags: Primary surplus budget months

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