The primary surplus in the 8 months of January-August exceeded the targets as it reached 5.5 billion euros against a target of 2.314 billion euros. At the same time, tax revenues appear increased by approximately 3.4 billion euros or 9.4% compared to the target.
In particular, according to the provisional data on the execution of the state budget, on a modified cash basis, for the period January – August 2023, there is a deficit in the balance of the state budget of 103 million euros against a target for a deficit of 2,426 million euros that has been included for the corresponding period of 2023 in the introductory report of the 2023 Budget and a deficit of 4,105 million euros in the corresponding period of 2022. The primary result was a surplus of 5,585 million euros, against a target for a primary surplus of 2,314 million euros and a primary surplus of 19 million. euros for the same period in 2022.
Income
The amount of net revenues of the state budget amounted to 43,105 million euros, showing an increase of 47 million euros or 0.1% compared to the target included for the corresponding period in the introductory report of the 2023 Budget despite the reduced PDE revenues, as and the non-collection of: a) the price, in the amount of 1,496 million euros for the concession of 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 collected during the month June, since the relevant procedure for the approval of the contract is ongoing, and b) the third installment of 1,718 million euros from the Recovery and Resilience Fund which was predicted to be collected during the month of August. On the contrary, in the remaining revenue categories there was an over-execution 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.
Tax revenues amounted to 39,911 million euros, increased by 3,416 million euros or 9.4% compared to the target included in the introductory report of the 2023 Budget. Part of this increase, amounting to approximately 470 million euros, concerns 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 in the month of December 2022. The remaining amount of the over-execution comes from the better performance of the previous year’s personal and legal income taxes collected in installments until the end of February 2023, as well as from the better performance in the collection of the current year’s taxes.
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 revenues of the Public Investment Budget (PDE) amounted to 2,350 million euros, reduced by 990 million euros from the target (3,340 million euros).
The exact distribution between the revenue categories of the state budget will be carried out with the publication of the final bulletin.
In particular, in August 2023 the total net revenues of the state budget amounted to 5,956 million euros, increased by 585 million euros compared to the monthly target.
Tax revenues amounted to 6,243 million euros, increased by 1,170 million euros or 23.1% against 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 to the payment of the first and of the second installment of income tax by September 4.
Revenue returns totaled €571 million, up €136 million from the target (€434 million).
The revenue of the Public Investment Budget (PDE) amounted to 79 million euros, reduced by 456 million euros from the target (535 million euros).
Expenses
The expenses of the State Budget for the period January – August 2023 amounted to 43,207 million euros and are shown reduced by 2,276 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 130 million euros, mainly due to the deferral 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 1,487 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.
The Ministry of National Economy and Finance, for the correct interpretation of the above data, clarifies the following:
As reflected in the Budget execution sheet, tax revenues on a cash basis in the January-August period appear increased by 3,416 million euros, however (a) part of this increase, amounting to approximately 470 million euros, concerns the extension of the payment deadline of of traffic fees until the end of February 2023 and is counted fiscally in the year 2022, (b) also an amount of 367 million euros concerns the performance of the income taxes of natural and legal persons of the previous year that were collected in installments until the end of February 2023 and is counted fiscally in year 2022, while (c) revenue returns that count negatively in the fiscal result appear increased by 772 million euros from the target. Consequently, the Budget execution figures show a better performance of tax revenues up to August relating to the current year by €1.8 billion compared to the Budget.
Regarding these (a) an additional budget of 700 million euros has already been voted for additional expenses of the current year that will be implemented in the next period (market pass, youth pass, health expenses, salary of faculty members, cost of self-governing elections, etc.), (b) ) at least 600 million euros will be given immediately on the basis of the second supplementary budget for the first compensations and (c) based on the additional measures of the TIF, an additional approximately 400 million euros will be spent (reinforcement of pensioners who will not receive a personal difference, market pass for the affected areas, heating allowance, return of EFK Diesel to farmers, etc.). In addition, the General Government Budget may be adversely affected in the coming months by the financial consequences of Hurricane Daniel.
