The key to the next day of the economy, among other things, is the course of revenues. Lately, there has been an improvement in revenues to levels higher than the targets set over the medium term.
A possible maintenance of this trend throughout the year will mean a better fiscal picture, so that the government can optimally manage the potential space that will be created by overcoming the growth of the economy.
Tomorrow morning, the Ministry of Finance announces the data from the execution of the budget in 10 months. According to the first indications, but also the data from the course of the revenues from tourism lead effortlessly to the conclusion that in October the revenues moved at least within the target if not at higher levels.
This trend continues, as reported by the relevant information in November. In the first 11 days of the month, revenue exceeds the target by 58 million euros.
The catalytic role in the positive course of revenues is played by the course beyond tourist forecasts, but also the large increase in domestic consumption. The above two factors give a strong signal for GDP growth well above the target, not only of the government, but also of most international companies and analysts.
Of course, as the political leadership of the Ministry of Finance has repeatedly stressed, as long as deficits are generated, it is extremely difficult to open the debate on benefits. According to the Commission report, the primary deficit in 2021 will be slightly higher than the initial estimates and will reach 7.2%.
This has happened, of course, because significant amounts have been disbursed or will be disbursed by the end of the year to support households, due to the increased cost of energy, but also to support all those affected by the summer fires.
According to the Commission, the primary deficit of 2022 will land at 1.4%, while according to the Minister of Finance, Christos Staikouras, it will be a little lower in the region of 1%. This estimate is particularly interesting if one compares the estimate for the Eurozone as a whole, according to which the primary deficit will be in the region of 2.4%.
It is worth noting that based on the budget execution data in the nine months (January – September) of 2021, revenues were exceeded by 1.1 billion euros.
In particular, the amount of net revenues of the state budget amounted to 39.450 billion euros, showing an increase of 1.358 billion euros or 3.6% compared to the estimate for the corresponding period included in the explanatory report of the MTEF 2022-2025.
Total state budget revenues amounted to 42.770 million euros, increased by 1.151 billion euros or 2.8% against the target
According to what the Deputy Minister of Finance Theodoros Skylakakis had stated a month ago: “The significant improvement of tax revenues in September 2021, where tax revenues amounted to 5,012 million euros, increased by 1,127 million euros or 29% compared to is a strong indication of a faster-than-expected recovery in 2021. Once this trend is confirmed in the coming months by revenue data and other macroeconomic variables, it improves the financial outlook for 2021 and (depending on revenue composition) probably in 2022 “.
Source: ΑΠΕ-ΜΠΕ
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Source From: Capital
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