The dramatic drop in state spending and the positive course of revenues kept the primary budget surplus above its target in August, according to data published on Tuesday by the Finance Ministry.
Against a revenues target of more than 2.7 billion euros over expenditure excluding interest payment, the primary budget deficit amounted to 3.7 billion in the first eight months of the year. Budget revenues beat their target by 464 million euros, while in August alone they rose above their monthly target by 62 million, even though the planned payment of the first installment of the Single Property Tax (ENFIA) was postponed to September.
The Finance Ministry views this development as very positive for the 2016 budget, as the monthly target was beaten even without the ENFIA tranche. It is now looking forward to the September figures, which will include the first payment of ENFIA and the second of income tax, so as to establish whether there will be any problems up to the end of the year.
Still, the big primary surplus is mainly attributed to the slashing of expenditure: State budget spending was 3.4 billion euros below target in the first eight months of the year, of which 133 million euros was in August.