August revenues give reason for gov’t hope

Budget revenues were up by about 120 million euros, or 11 percent, in the first 20 days of August, compared to the same period last year, giving the government cause for optimism.

The next six months are seen as crucial for the target of attaining a primary budget surplus for the year as a whole, as besides income tax, the Real Estate Tax for the years 2011, 2012 and 2013 will also be due for collection. As the monthly target is 3.9 billion euros, when 4.8 billion was collected in August 2012, ministers believe that at the same rate of collection the monthly target will be overshot by 300-400 million.

The encouraging signs this month are that income tax inflows are 50 percent higher than last year, taxes on deposit interest are up 41 percent, VAT is also up – mostly due to heightened activity in tourism – and car sales are markedly higher.