2 billion tax surplus in 5 months

Budget revenues for the first 5 months of 2023 increased by more than planned last year by 2.3 billion euros. At the same time, the initial estimates of tax revenues were significantly changed.

So, if the initial forecast of the Ministry of Finance assumed that at the “closing” of the five-month period, the Greek budget would have a primary deficit of 1.4 billion euros, then according to the data of the Ministry of Finance, a surplus of 2.3 billion euros was recorded!

It is obvious that if the estimates of €19-20 billion in tourism receipts are confirmed, and after fully accounting for the positive effect of the “fall” in energy prices, then even the revised estimate of the stability program for the primary surplus of 1.1% will be significantly underestimated.

Budget: first data from the General Accounting Department (ΓΛΚ)

According to the first figures from ΓΛΚ, tax revenues amounted to 22.954 billion euros, which is 2.005 billion euros or 9.6% more than the target included in the 2023 budget explanatory report. Part of this increase, amounting to about €470 million, is related to the extension of the deadline for payment of circulation taxes until the end of February 2023, while this amount was expected to be collected in December 2022.

The remaining excess amount is due to higher personal and corporate income taxes for the previous year, which are collected in installments until the end of February 2023, as well as higher VAT rates for the current year.

Revenue returns amounted to €2.707 billion, €459 million more than the target, mainly due to VAT refund in March to the renewable energy operator and guarantees of origin of about €220 million generated from revenues collected ΔΑΠΕΕΠ and returned to the state by a temporary mechanism for the return of part of the proceeds from purchases the next day. Public Investment Budget (PBI) revenue was €1.950 billion, €240 million more than the target.

Increasing tax revenue

In May, tax revenues amounted to 5.151 billion euros, which is 438 million euros or 9.3% more than the target. Tax refunds amounted to €579 million, €70 million more than the target of €509 million.

In the area of ​​spending, the most noteworthy are the €502 million MSE Information Society grant to serve Market Pass needs, the €367 million reimbursement to the Energy Transition Fund for energy producer windfalls for the period October 1, 2021 to June 30, 2022, and payments subsidies for diesel heating this year in the amount of 100 million euros.

Investment expenditure disbursements amounted to €3.877 billion, exceeding the target by €87 million. ΠΔΕ spending includes €62 million for COVID-19 measures, the most important of which is the strengthening of medical institutions with support staff to meet the needs of the COVID-19 pandemic in the regions, a grant to existing small and medium-sized enterprises in the retail sector, with a physical store, to develop, modernize and manage an e-shop, as well as support start-up entrepreneurs through the Elevate Greece program.

PS Excellent performance, unless, of course, this is an ND election advertisement. However, if the ND wins the elections, we will only be able to find out the real information from the reports of the European Central Bank or … the CIA.

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