FINANCE

Revenues in August beat expectations

revenues-in-august-beat-expectations

The course of tax revenues in August is considered satisfactory, as they came in only 0.9%, or 41 million euros, below the original budget target, despite the extension of the deadline for the payment of the first two income tax tranches until Friday.

Alternate Finance Minister Thodoros Skylakakis explained that the shortfall compared to the target “is far below the effects of the income tax tranche postponement that would have been collected by end-August” (some €200-250 million).

The answer is once again tourism, the takings from which the government now expects to come to €9-10 billion for the whole of 2021, which is about 50-55% of the revenues in record year 2019, according to a Finance Ministry source. In the first half of the year tourism takings amounted to €1.1 billion, but there was a major acceleration in the months after June.

Nevertheless government officials remain cautious regarding the fourth quarter, citing the uncertainty the pandemic continues to generate. If the results continue to be better than originally projected and if there is more fiscal space, additional favorable measures may be decided.