Ministry of Finance - Budget Execution: Tax revenues exceeded by 5.1 billion in the seven months

ministry of finance

According to the provisional data on the implementation of the state budget, on a modified cash basis, for the period January-July 2022, there is a deficit in the state budget balance of EUR 4,591 million, compared to a target deficit of EUR 9,180 million included for the corresponding period of 2022 in the 2022 Budget Report and a deficit of EUR 12,515 million in the corresponding period of 2021. The primary outcome was a deficit of EUR 1,167 million, against a target primary deficit of EUR 5,808 million and a primary deficit of EUR 9,063 million for the same period in 2021.

The amount of net revenues of the state budget amounted to EUR 33,697 million, an increase of EUR 4,797 million or 16.6% compared to the estimate for the corresponding period included in the 2022 Budget's explanatory memorandum, despite the reduced revenues of the PDEF.

Total state budget revenues amounted to EUR 36,846 million, up by EUR 5,556 million or 17.81TTP2T against the target.

Tax revenues amounted to EUR 31,094 million, an increase of EUR 5,167 million or 19.9% compared to the target included in the 2022 Budget's explanatory memorandum. This over-execution is due to the extension of the deadline for the payment of traffic taxes until the end of February 2022, the better performance in the collection of taxes of the previous year collected in instalments until the end of February 2022, the better performance in the collection of taxes of the current year, as well as the collection of the first three instalments of ENFIA in the months of May, June and July, while it was foreseen that they would be collected in the months of September, October and November respectively. For July in particular, revenues were boosted by the significant collection of the refundable advance payment which amounted to around EUR 897 million for that month.

Revenue repayments amounted to EUR 3 149 million, an increase of EUR 758 million over the target (EUR 2 391 million).

Total revenues of the Public Investment Budget (PIB) amounted to €1,776 million, down by €384 million from the target (€2,160 million).

For July 2022, total net state budget revenues amounted to EUR 7,438 million, an increase of EUR 2,718 million compared to the monthly target.

Total state budget revenues amounted to €7,892 million, up by €2,677 million compared to the estimate for the corresponding period included in the 2022 Budget's explanatory memorandum.

Tax revenues amounted to EUR 6,421 million, up by EUR 1,582 million or 32.7% against the target, mainly due to the collection of the third instalment of the ENFIA, which was foreseen to be collected in November, and the significant collection of the refundable advance.

Revenue recoveries amounted to EUR 455 million, EUR 41 million lower than the target (EUR 496 million).

Total revenues of the Public Investment Budget (PIB) amounted to EUR 514 million, up by EUR 424 million compared to the target (EUR 90 million).

State Budget expenditure for the period January-July 2022 amounted to EUR 38,288 million, which is an increase of EUR 209 million compared to the target (EUR 38,079 million) included in the 2022 Budget's explanatory memorandum.

On the Ordinary Budget side, payments are below target by EUR 581 million. This development is mainly due to the late payment of EUR 670 million for the armaments programmes. Payments for guarantees forfeitures are also lower by EUR 392 million. On the contrary, payments have increased compared to the targets, mainly for grants to CSOs (by EUR 559 million).

Payments for the investment expenditure part of the budget amounted to EUR 5 350 million, an increase of EUR 789 million compared to the target of EUR 4 561 million.

The provisional picture of the main expenditure payments for budgetary measures taken in response to the pandemic for the period January-July is as follows:

(a) the support to small and micro enterprises affected by COVID-19 in the Regions amounting to €160 million from the EIF,

b) the public contribution of EUR 79 million from the EIF for the repayment of business loans of affected borrowers,

(c) the €42 million working capital subsidy to tourism enterprises from the EIF,

d) the reinforcement of health institutions with auxiliary staff in the Regions, amounting to €53 million from the MFF,

e) the exceptional grant of €44 million from the EDF for the pandemic-affected entertainment businesses, gyms, dance schools, etc,

(f) the special purpose allowance expenditure of EUR 149 million, paid by the Ministry of Labour and Social Affairs (transfers category),

(g) the additional subsidies to EOPYY, amounting to EUR 90 million and to hospitals and HIFs, amounting to EUR 91 million, as well as the purchase of vaccines amounting to EUR 258 million,

(h) the additional grant to DYPA (formerly OAED) of EUR 400 million to cover the loss of revenue due to the reduction in employee insurance contributions and the grant to e-EFKA of EUR 150 million to cover the loss of revenue due to the reduction in contributions to DYPA; and

(i) the state compensation of EUR 49 million to landlords due to reduced rents received.

The provisional picture of the main payments of expenditure on energy crisis response measures relating to the Central Administration for the period January - July is as follows:

(a) a grant to the OPEKA of EUR 206 million, broken down as follows: EUR 120 million for the exceptional payment of the child benefit, EUR 46 million for the payment of the supplement to the income support for beneficiaries of the minimum guaranteed income, EUR 33 million for the exceptional financial assistance to disabled persons and EUR 7 million for the supplement to the pension of uninsured elderly persons,

(b) a grant to the e-EFKA of €135 million to provide exceptional financial support to vulnerable pensioners,

(c) a grant to the Information Society to assist natural persons and self-employed persons to cope with the increase in the cost of motor fuel (fuel pass) amounting to EUR 131 million and to assist with increased electricity bills (power pass) amounting to EUR 280 million,

d) a grant of €50 million to OPEKEPE to address the consequences for the Greek livestock sector due to international developments,

(e) a special purpose allowance to support taxi operators and drivers of EUR 5 million; and

(f) a subsidy of EUR 74 million for diesel fuel.

For the period January - July 2022, state budget expenditure is presented reduced, compared to the corresponding period of 2021, by EUR 1,195 million.

State Budget Execution Bulletin July 2022 (provisional data)

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