The Greek state budget recorded a primary surplus of over 2.0 billion euros in the January-May period compared with a target of a primary deficit of 1.3 billion euros, the finance ministry said Thursday. A significant part of this increase is due to the better performance of the VAT.
According to the preliminary data available for the execution of the state budget on a modified cash basis, the state budget balance for the period of January – May of 2023 presented a deficit of 1,126 million euros, against a target of a deficit of 4,446 million euros that has been incorporated for the same period of 2023 in the 2023 budget introductory report and a deficit of 4,066 million euros for the same period of 2022. The state budget primary balance amounted to a surplus of 2,289 million euros, against the primary deficit target of 1,396 million euros and the primary deficit of 1,487 million euros performed at the same period of the previous year.
State Budget net revenues amounted to 26,241 million euros, showing an overperformance of 2,937 million euros or 12.6% against the target of the corresponding period, which is included in the 2023 budget introductory report. This increase is mainly due to: (a) the increased 5-months tax revenues, (b) the collection of an amount of 603 million Euros from ANFAs, that was not projected in the 2023 Budget introductory report and (c) the increased revenues of the PIB.
Tax revenues amounted to 22,954 million euros, 2,005 million euros or 9.6% higher against the target which is included in the 2023 budget introductory report. Part of this increase, amounting to approximately 470 million euros, concerns the extension of the deadline of the payment of road duties until the end of February 2023, while it was estimated that this amount would be collected in December 2022. The remaining amount of over execution is due to the better performance of income taxes of natural and legal persons of the previous year, collected in installments until the end of February 2023, as well as, the best performance of the collection of VAT of the current year.
Tax refunds amounted to 2,707 million euros, 459 million euros higher than the target (2,247 million euros) mainly due to the VAT refund in March, to the Renewable Energy Sources Operator & Guarantees of Origin (DAPEEP SA), amounting to approximately 220 million euros arising from revenues collected by DAPEEP and attributed to the State from the Recovery Mechanism in Day-Ahead Market
