FINANCE

Road tax contains budget deficit in Jan-Feb

road-tax-contains-budget-deficit-in-jan-feb

The Greek state budget recorded a primary deficit of 1.497 billion euros in the January-February period, compared to a budget target for a primary shortfall of €2.737 billion euros, the Finance Ministry announced on Friday. The general government balance showed a deficit of €3.268 billion, compared to a budget target for a deficit of €4.507 billion

The improved figures, compared to budget projections, are attributed to the payment of the 2021 road tax that was postponed from end-2020 to the first couple of months of this year.

More specifically, net revenue totaled €8.533 billion, 3.4% above the budget target, while regular budget net revenue was 2.2% higher at €9.135 billion. Tax revenue totaled €7.624 billion, 0.9% above the budget target. Tax revenue exceeded the targets in the categories of: stamp tax (35.7%), tax on financial and capital transactions (36%), other taxes on production (49.6%), tax on vehicles (827.9%) and spending returns (253.1%).

On the other hand, tax revenues fell short of the targets in the categories of: value-added tax on oil products (-17.7%), VAT on other products and services (-2.9%), special consumption tax on energy products (-19.6%), other taxes on specific services (-38.9%), taxes on import duties (-38.7%), property taxes (-16.1%), income taxes (-0.9%), corporate taxes (-13.5%), other income taxes (-31.7%) and transfers (-19.8%).

Tax returns totaled €602 million in the two-month period, €85 million below the budget target, while Public Investment Program revenue was €837 million, or €223 off target.

Budget spending totaled €11.801 billion in the January-February period, €959 million below the budget target, while Public Investment Program spending exceeded the budget target by €1.094 billion, boosted by government support measures. Budget spending was up €3.137 billion compared with the same period last year.

In February alone, the state budget revenue totaled €4.686 billion, €1.092 billion higher than the monthly target, while regular budget revenue was at €5.014 billion, €999 million above the target. Tax revenues amounted to €3.964 billion, 10.9% above the budget target, while tax returns totaled €328 million, €94 million off target. The revenues of the Public Investment Program were €692 million, €392 million above the monthly target.