Greece produces huge primary surplus in last 10 months

Greece produced a primary surplus of 5.755 bn euros in the January-October period, over double the surplus target of 2.314 bn euro and far above the primary surplus of 3,811 billion in the same period last year, according to finance ministry data released today.

The report said that the state budget balance was positive by 921 million euros in the 10-month period compared to a projected deficit of 2,896 bn euro and a shortfall of 460 million euro  in the same period last year.

The state budget net revenue was 43,383 bn euro in the 10-month period, up 4.0 pct from budget targets. This development was attributed to the collection of 1,119 bn euro from an agreement to expand a concession contract for the Athens International Airport (initially expected to have been collected in 2018) and the collection of 644 million euros from ANFAs.

State budget revenue was 47,317 bn euros, up 4.5 percent from budget targets. Tax returns totaled 3,934 bn euros, 358 million euro over target, while Public Investment Programme revenue was 1,585 bn euro, 856 million euro below targets.

State budget spending totaled 42,462 bn euro in the 10-month period, 2,152 bn euro below target, reflecting a lower-than-expected execution of the Public Investment Programme, lower capital spending by 336 million euro, and lower defense spending.

However, state budget spending exceeded last year’s levels by 938 million euro in the January-October period, reflecting higher social subsidies, higher capital spending, and higher spending in the Public Investment Programme.

In October, state budget net revenue was 4,858 bn euro, exceeding monthly targets by 71 million euro.

Regular budget revenue was 5,275 bn euro, exceeding targets by 85 million euro.

Public Investment Programme revenue fell short of targets by 63 million euro, while tax returns totaled 417 million euro, up 14 million from monthly targets.

Budget spending was 3,818 bn euro, 429 million below target.