Greek state tax revenues in the 10th month exceed target by 5.1 billion euros

State coffers showed a large increase of 5.1 billion euros or 12.6% on tax revenues during the 10th month of 2022.

According to a related announcement by the Ministry of Finance, tax revenues amounted to 45,626 million euros, up by 5,108 million euros or 12.6% compared to the target included in the introductory report of the 2022 Budget.

“As clouds thicken over the global economy and slowing trends are seen in Europe, October’s revenue figures do not show a serious trend of diversification with respect to the very positive path the economy is on during 2022. Specifically, October’s tax revenue was up by 289 million euros against the target, an amount that is better than what is necessary to achieve the goals mentioned in the draft budget”, according to what Deputy Finance Minister Theodoros Skylakakis said.

Excess inflow

According to the Ministry of Finance, this influx of funds is due to:

a) the best performance of the previous year’s taxes collected in installments until the end of February 2022,

b) in the extension of the deadline for the payment of traffic fees until the end of February 2022,

c) to the best performance in the collection of the current year’s taxes and

d) in the collection by the end of October 2022 of six of the ten installments of ENFIA property tax, which were predicted to be collected from September 2022 to February 2023 with a higher amount of each monthly installment due to the smaller total number of installments (six).

Primary deficit

According to the provisional data on the execution of the state budget, on a modified cash basis, for the period January – October 2022, there is a deficit in the state budget balance amounting to 4,769 million euros against a target for a deficit of 11,027 million euros included for the corresponding period of 2022 in the introductory report of the 2022 Budget and a deficit of 11,497 million euros in the corresponding period of 2021. The primary result was a deficit of 349 million euros, against a target of a primary deficit of 6,752 million euros and a primary deficit of 7,179 million euros for the same period in 2021.

Read also: Bank of Greece: State budget primary surplus in the nine months at 776 million

The amount of net revenues of the state budget amounted to 48,866 million euros, showing an increase of 5,257 million euros or 12.1% compared to the estimate for the corresponding period included in the introductory report of the 2022 Budget, despite the reduced revenues of the PDE .

Tax refunds

Revenue returns amounted to €4,909 million, up €1,058 million from the target (€3,852 million).

The total revenues of the Public Investment Budget (PDE) amounted to 2,591 million euros, reduced by 499 million euros from the target (3,090 million euros).

6% increase in October in tax-revenues

For October, tax revenues amounted to 5,066 million euros, up by 289 million euros or 6% against the target, despite the provision for the collection in October of the second increased tranche of ENFIA property tax for 2022, amounting to 384 million euros, out of the six total installments, totaling a projected amount of 2,015 million euros, in accordance with the legislation in force at the time of the filing of the 2022 Budget report. Instead, with newer provisions, 10 monthly installments are foreseen, starting in May 2022. Furthermore, after the legislated interventions to reduce the property tax, the estimated amount of collection from this tax amounts to 1,839 million euros.

From the property tax, the total net revenue of the state budget amounted to 4,842 million euros, increased by 38 million euros compared to the monthly target.

The total revenues of the state budget amounted to 5,412 million euros, increased by 179 million euros compared to the estimate for the corresponding period included in the introductory report of the 2022 Budget.

Revenue returns totaled €569 million, up €141 million on target (€429 million).

The total revenues of the Public Investment Budget (PDE) amounted to 198 million euros, reduced by 32 million euros compared to the target (230 million euros).

Expenses

The State Budget expenditures for the period January – October 2022 amounted to 53,635 million euros, showing a reduction by 1,001 million euros compared to the target (54,636 million euros), which is included in the introductory report of the 2022 Budget.

In the section of the Regular Budget, the payments are shown reduced by 566 million euros compared to the target. This development is mainly due to the postponement of the payments of the equipment programs by 837 million euros. Payments for collateral forfeitures are also reduced by 495 million euros. The other capital transfers (various) moved in proportion, mainly due to the aid of the Energy Transition Fund by 1,000 million euros from Regular Budget resources.

Payments in the investment expenditure segment amounted to 7,627 million euros, short of the target (8,061 million euros) by 434 million euros.

Disbursements

The provisional breakdown of the main expenditure payments for fiscal measures taken due to the pandemic for the period January – October is as follows:

a) the support of small and very small businesses affected by COVID-19 in the Regions in the amount of 160 million euros from the Public Investment Budget,

b) the public contribution for the repayment of business loans of affected borrowers amounting to 89 million euros from the Public Investment Budget,

c) the working capital subsidy for tourism businesses amounting to 42 million euros from the Public Investment Budget,

d) the support of health institutions with auxiliary staff in the Regions in the amount of 80 million euros from the Public Investment Budget,

e) the emergency grant of entertainment businesses, gyms, dance schools, etc. affected by the pandemic. amounting to 44 million euros, from the Public Investment Budget,

f) the special purpose compensation expense of 158 million euros, which was paid by the Ministry of Labor and Social Affairs (category of transfers),

g) the additional grants to national health provider EOPYY, in the amount of 100 million euros and to hospitals and Regional Health Administrations, in the amount of 259 million euros, as well as the purchase of vaccines in the amount of 285 million euros,

h) the additional grant to the Public Employment Service in the amount of 400 million euros to cover the loss of revenue due to a reduction in employee insurance contributions and the grant to electonic social security system e-EFKA in the amount of 150 million euros to cover the loss of revenue from the reduction of contributions collected in favor of the Public Employment Service and

i) the state compensation of landlords amounting to 58 million euros, due to reduced rents.

The provisional recording of the main payments of the costs for the measures to deal with the energy crisis, concerning the Central Administration, for the period January – October, is as follows:

a) a grant to Organization of Welfare Benefits and Social Solidarity of 207 million euros, which is broken down into the following sub-parts: 120 million euros for the extraordinary installment for child benefit payments, 46 million euros for the payment of the increase in the income support of beneficiaries of the minimum guaranteed income, 33 million euros for the extraordinary financial support of the disabled and 7 million euros for the increase of the pension of uninsured elderly persons,

b) a grant to the electonic social security system e-EFKA of 135 million euros for the emergency financial support of vulnerable pensioners,

c) grant to the Information Society for the support of natural persons and freelancers in order to deal with the increase in the cost of fuel passes (fuel pass) of 302 million euros and for the support due to increased electricity bills (power pass) of 296 million euros,

d) grant to Community Aid Payment Agency of 50 million euros to alleviate consequences for Greek livestock farming due to international developments,

e) special purpose compensation to support TAXI operators and drivers amounting to 5 million euros,

f) diesel fuel subsidy of 176 million euros and

g) strengthening of the Energy Transition Fund by 1,000 million euros.

For the period of January – October 2022, the state budget expenditures are shown reduced, compared to the corresponding period of 2021, by 2,018 million euros.