ECONOMY

VAT revenues boost budget figures in Jan-Aug

vat-revenues-boost-budget-figures-in-jan-aug

Surprisingly high value-added tax takings boosted state revenues over the summer, taking the primary budget surplus of the year’s first eight months to 2.9 billion euros, per the data the State General Accounting Office released on Wednesday, against a target for a primary deficit of 272 million euros.

VAT revenues beat the January-August target by 573 million euros, and if this trend continues until the end of the year it will put discussions with the country’s creditors regarding next year’s budget on a new footing.

Data analysis shows that VAT earnings from products and services posted an annual increase of 653 million euros, despite the reduction in VAT takings from fuel and tobacco products.

Tax revenues posted an annual increase of 422 million in the year to end-August, while tax rebates were also higher. Net budget revenues amounted to 33.13 billion euros, beating their target by 2.4 billion or 7.9 percent.

The state’s expenditure was 965 million euros lower, not only due to the reduction in public investments but also to the safety cushion originally created to tackle any court decisions concerning retroactive payments for special wage grids.