Budget revenues lead to a primary surplus

Budget revenues lead to a primary surplus

State budget revenues continued to grow in August, expanding a much needed fiscal space for the Greek government as they offered an unexpected primary surplus when a primary deficit had been anticipated.

On Friday the Finance Ministry released its monthly report on budget execution which showed that budget revenues exceeded the target by 1.4 billion euros, or by €5.6 billion in the January-August period.

Commenting on this development, Alternate Minister Thodoros Skylakakis said: “Tax revenue significantly overperformed in August, exceeding the target by 32.6%. This performance is compatible with high economic growth rates this year, while the advance collection of the coming months’ revenue is adding safety to an implemented fiscal policy in an uncertain period.”

The state budget, based on provisional data on a cash basis, showed a deficit of €4.114 billion in the eight-month period, compared to a budget target for a deficit of €9.992 billion and after a deficit of €10.52 billion in the same period last year.

The primary result showed a surplus of €10 million, against a target for a primary deficit of €5.942 billion and a primary deficit of €6.38 billion in the same period in 2021.

Net revenue was €39.222 billion, 17% above the target, while regular revenue was €42.797 billion, 17.5% above the target.

Tax revenue amounted to €35.844 billion, 18.6% above the target.

Tax returns totaled €3.575 billion, €704 million above the target.

Public Investment Program revenues were €1.92 billion euros, €849 million below the target.

State budget spending totaled €43.336 billion in the January-August period, €193 million below the target and €1.869 billion below that of the same period in 2021.

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