The good course of revenues fills the basket of TIF

By Tasos Dasopoulos

The 5,167 million euro tax revenue overshoot in the seven months of January-July frees the economic staff to implement a third, enhanced package of support for households and businesses until mid-2023 and permanent relief next year.

There is now the fiscal space to continue absorbing the adjustment clause until mid-2023, deliver fuel pass 3 and support financially vulnerable households with a new enhanced punctuality check. Behind the revenue beat is growth well above the 3.1% target for this year. With the wind of greater growth it becomes relatively simpler for 2023 to abolish the special solidarity levy for public, private sector and pensions.

There is also scope for the reduction in social security contributions to reach 5% from 2019, with a further 1% reduction next year and perhaps a permanent reduction in the corporate tax rate to 20% from 22% today.

In pensions, in addition to the double increase (through inflation and growth rate), a solution will also be provided for the retroactivity of the supplementary and gifts after the decision of the Supreme Court that vindicated those who appealed to the courts and were vindicated. Through the support of businesses, it will be possible until May at the latest to have a new increase in minimum wages.

The course of the revenue

How will all this be done? With the wind given by the excess of 1,582 million euros recorded in the tax revenues of July, with the help of the one-time payment of refundable advance obligations of 1 billion euros but also the faster payment of income taxes and ENFIA. This excess reaches 5,167 million euros with many positive surprises from the refundable advance front as well as fixed tax liabilities.

In more detail, according to the data of the State General Accounting Office for the seven months, the amount of net revenue of the state budget amounted to 33,697 million euros, showing an increase of 4,797 million euros or 16.6% compared to the estimate for the corresponding period 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.

Tax revenues amounted to 31,094 million euros, up by 5,167 million euros or 19.9% ​​compared to the target included in the 2022 Budget report. This overachievement is due to the extension of the deadline for the payment of traffic fees until the end February 2022, to the best performance of the previous year’s taxes collected in installments until the end of February 2022, to the best performance in the collection of the current year’s taxes, as well as to 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 compared to the target (€2,391 million).

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).

July

As for July 2022, the total net revenues 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).

All this while the State Budget expenditures 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 has been included in the introductory report of the 2022 Budget.