Tax revenue increase by 511 million or 17.5% against the target in March 2022

Revenues from taxes show a significant increase in March, according to budget execution data recently released by the Ministry of Finance. Specifically, they are increased by 511 million or 17.5% against the target, which according to Deputy Finance Minister Theodoros Skylakakis “overcompensated for the very high revenue returns which were increased by 321 million euros from the target”.

Th. Skylakakis specifically noted that “the good course of public revenues continued in March, despite the negative effects on the economic climate from the war waged by Russia against Ukraine. Tax revenues increased by 511 million euros or 17 5% against the target, which offset the very high revenue refunds which were increased by € 321 million from the target. According to the estimates of the General Accounting Office, the improvement is likely to reach or even exceed 1.5 points of GDP, a development that is extremely important as it confirms to the institutions and markets the prudent management of public and allows for unreasonable additional financial support to households and businesses without “due to the high energy prices caused by the heinous Russian invasion.”

The announcement of the Ministry of Finance is as follows:

According to the provisional execution data of the state budget, on a modified cash basis, for the period January – March 2022, there is a deficit in the state budget of 3.921 billion euros against a target for a deficit of 3.593 billion euros that has been included for the corresponding 2022 in the presentation report of the 2022 Budget and a deficit of 5.714 billion euros in the corresponding period of 2021.

The primary result was a deficit of 1.687 billion euros, against a target for a primary deficit of 1.331 billion euros and a primary deficit of 3.413 billion euros for the same period in 2021.

The amount of net state budget revenues amounted to 11.925 billion euros, showing a decrease of 1.387 billion euros or 10.4% compared to the estimate for the corresponding period included in the budget report 2022. However, the target of the report included in February the collection of the first installment for 2022 from the Recovery and Resilience Fund (TAA) amounting to 1.718 billion euros, which was collected on April 9, 2022 and will appear in the State Budget Execution Bulletin for April 2022. Excluding from the TAA, net income increased by 331 million euros or 2.5% against the target, despite the reduced revenue of PDE.

Total state budget revenues amounted to 13.2228 billion euros, down 1.106 billion euros or 7.7% from the target. Excluding the above amount from the TAA, total revenue is € 612 million higher than the target.

Tax revenue was € 12.144 billion, up € 1.337 billion or 12.4% from the target set in the 2022 Budget Report. February 2022, in the best return of the previous year taxes collected in installments until the end of February 2022 as well as in the best return in the collection of taxes of the current year.

Revenue returns amounted to € 1.303 billion, up € 280 million from the target (€ 1.023 billion).

Public Investment Budget (PDB) revenues amounted to 548 million euros, down 697 million euros from the target (1.245 billion euros).

The exact distribution between the categories of revenues of the state budget will be made with the issuance of the final bulletin.

In particular, in March 2022 the total net revenue of the state budget amounted to 2.952 billion euros, reduced by 416 million euros compared to the monthly target due to reduced revenues of PDE.

The total state budget revenues amounted to 3.613 billion euros, reduced by 96 million euros compared to the estimate for the corresponding period included in the budget report 2022.

Tax revenue stood at 3.439 billion euros, up 511m euros or 17.5% from the target due to better tax collection performance this year, as mentioned above.

Revenue returns amounted to € 661 million, up € 321 million from the target (€ 340 million).

Public Investment Budget (PDB) revenues amounted to € 2 million, down € 603 million from the target (€ 605 million).

State Budget expenditures for the period January – March 2022 amounted to 15.846 billion euros and are reduced by 1.059 billion euros compared to the target (16.905 billion euros), which is included in the presentation of the 2022 Budget.

On the part of the Regular Budget, there is a lag of 1.517 billion euros against the target, which is mainly due to the delay of payments of armaments programs by 459 million euros. There is also a lag in transfers to OKA by 207 million euros, in the current transfers to EU organizations and states. by EUR 188 million and the forfeiture of guarantees by EUR 147 million.

Payments in the area of ​​investment expenditure amounted to 1.902 billion euros, showing an increase compared to the target of 1.443 billion euros by 459 million euros.

The provisional picture of the main payments of the measures against the pandemic for the period January – March, is as follows:

(a) the support of small and micro-enterprises affected by COVID-19 in the Regions amounting to EUR 150 million from the EDP;

b) the public contribution for the repayment of business loans of affected borrowers amounting to 59 million euros from the EDP;

(c) a working capital subsidy to tourism businesses of EUR 42 million from the EDP; and

d) the special purpose compensation expenditure of EUR 55 million, paid by the Ministry of Labor and Social Affairs (transfer category).

State budget expenditures for the period January – March 2022 are reduced, compared to the corresponding period of 2021, by 1.376 billion euros.