Soaring tax revenues by 5.1 billion euros in 7 months

The implementation of the state budget in the January-July period showed a significant overshoot of the targets, during which the tax revenues were increased by 5.167 billion euros or almost 20% of the estimate.

In particular, as informed by the Ministry of Finance, the amount of of net income of the state budget for the period January – July 2022 amounted to 33,697 million euros, showing an increase of 4,797 million euros the 16.6% against the estimate for the corresponding period that has been included in the introductory report of the 2022 Budget, despite the reduced revenues of the PDE.

The total revenues of the state budget amounted to 36,846 million euros, increased by 5,556 million euros or 17.8% against the target.

The tax revenue amounted to 31,094 million eurosincreased by 5,167 million euros the 19.9% against the target included in the introductory report of the 2022 Budget.

This over-execution notes the Ministry of Finance is due to the extension of the deadline for the payment of traffic fees until the end of February 2022, the better performance of the previous year’s taxes that were collected in installments until the end of February 2022, the better performance in the collection of the current year’s taxes , as well as the collection of the first three installments of ENFIA during the months of May, June and July, while it was predicted that they would be collected in the months of September, October and November respectively.

Especially for the month of July, the income was boosted by the significant collection of the refundable advance which amounted to approximately 897 million euros for the month in question.

Revenue returns amounted to €3,149 million, up €758 million from the target (€2,391 million).

The deficit in the balance of the state budget of 4,591 million euros against a target for a deficit of 9,180 million euros included for the corresponding period of 2022 in the introductory report of the 2022 Budget and a deficit of 12,515 million euros in the corresponding period of 2021.

The primary result was a deficit of 1,167 million euros, against a target of a primary deficit of 5,808 million euros and a primary deficit of 9,063 million euros for the same period in 2021.

The total revenues of the Public Investment Budget (PDE) amounted to 1,776 million euros, reduced by 384 million euros from the target (2,160 million euros).

Th. Skylakakis: Good course of revenues intertwined with the resilience of the economy

Commenting on the execution of the budget, the Deputy Minister of Finance Theodoros Skylakakis said:

“The good course of public revenues continues in the month of July. It is intertwined with the resistance shown by the Greek economy to the enormous external pressures it has faced in recent years. Particularly important is the massive return of almost a third of the refundable advance from the small and medium-sized enterprises, despite the fact that there was an alternative to paying in very many and low-interest installments. This massive return proves that something is beginning to change in the very business model of small and medium-sized enterprises.”

July

For July 2022, the total net revenue of the state budget amounted to 7,438 million euros, increased by 2,718 million euros compared to the monthly target.

The total revenues of the state budget amounted to 7,892 million euros, increased by 2,677 million euros compared to the estimate for the corresponding period included in the introductory report of the 2022 Budget.

Tax revenues amounted to 6,421 million euros, up by 1,582 million euros or 32.7% against the target, mainly due to the collection of the third tranche of ENFIA which was forecast to be collected in the month of November, and the significant collection from the refundable deposit.

Revenue returns amounted to €455 million, down €41 million from the target (€496 million).

The total revenues of the Public Investment Budget (PIB) amounted to 514 million euros, increased by 424 million euros compared to the target (90 million euros).

Expenses

The expenses of the State Budget for the period January – July 2022 amounted to 38,288 million euros and are presented increased by 209 million euros compared to the target (38,079 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 compared to the target by 581 million euros. This development is mainly due to the postponement of the payments of the equipment programs by 670 million euros.

Payments for collateral forfeitures are also reduced by 392 million euros. On the contrary, increased payments in relation to the objectives are observed mainly in grants to OKA (by 559 million euros).

Payments in the investment expenditure arm amounted to 5,350 million euros, showing an increase of 789 million euros compared to the target of 4,561 million euros.

The provisional picture of the main expenditure payments for fiscal measures taken due to the pandemic for the period January – July 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 PDE,

b) the public contribution for the repayment of business loans of affected borrowers amounting to 79 million euros from the PDE,

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

d) the support of health institutions with auxiliary staff in the Regions in the amount of 53 million euros from the PDE,

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

f) the special purpose compensation expense of 149 million euros, which was paid by the Ministry of Labor and Social Affairs (category of transfers),

g) the additional grants to EOPYY, in the amount of 90 million euros and to hospitals and DYPE, in the amount of 91 million euros, as well as the purchase of vaccines in the amount of 258 million euros,

h) the additional grant to DYPA (formerly OAED) 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 e-EFKA in the amount of 150 million euros to cover the loss of revenue from the reduction of contributions collected in favor of DYPA and

i) the state compensation of landlords amounting to 49 million euros, due to reduced rents they receive.

Payments

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

a) a grant to OPECA of 206 million euros, which is broken down into the following sub-parts: 120 million euros for the extraordinary installment of the child allowance, 46 million euros for the payment of the increase in the income support of beneficiaries of the minimum guaranteed income, 33 million for the extraordinary financial support of the disabled and 7 million euros for the increase of the pension of the uninsured overages,

b) a grant to the 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 motor fuels (fuel pass) in the amount of 131 million euros and for the support due to increased electricity bills (power pass) in the amount of 280 million euros,

d) grant to OPEKEPE in the amount of 50 million euros to deal with the consequences in Greek livestock farming due to international developments,

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

f) diesel fuel subsidy of €74 million.

For the period of January – July 2022, the state budget expenditures are presented reduced, compared to the corresponding period of 2021, by 1,195 million euros.