Greek state budget: Primary deficit in the first four months at 811 million euros

The primary budget deficit in the first four months of 2022 reached 811 million euros, moving by about 1.7 billion euros better than the target, as reflected in the official data of the Ministry of Finance. At the same time, tax revenues amounted to 16.081 billion euros, increased by 1.789 billion euros or 12.5% ​​against the target included in the explanatory report of the 2022 budget.

According to the provisional execution data of the state budget, on a modified cash basis, for the period January – April 2022, there is a deficit in the state budget of 3,328 million compared to a deficit target of 4,973 million euros included for the corresponding 2022 in the budget report 2022 and a deficit of 8,797 million euros in the corresponding period of 2021. The primary result was a deficit of 811 million euros, against a target for a primary deficit of 2,453 million euros and a primary deficit of 6,201 million euros the same period in 2021.

Deputy Finance Minister optimistic

The January-April budget picture is optimistic, based on the course of tax revenues, as the total state budget revenues amounted to 19,360 million euros, increased by 1,110 million euros or 6.1% against the target. According to Deputy Finance Minister Theodoros Skylakakis, “the good course of tax revenues continues in April, despite the financial uncertainty and other negative effects caused by the Russian invasion of Ukraine. In particular, tax revenues in April were increased by 506 million euros or 14.5% against the target. As the Minister emphasizes, this development before the beginning of the main tourist season, is an indication of the resilience of economic activity in our country and a ray of optimism for the course of the Greek economy in a predominantly difficult international economic period.

Revenues

The amount of net revenues of the state budget amounted to 17,679 million euros, showing an increase of 687 million euros or 4% compared to the estimate for the corresponding period included in the budget report 2022, despite the reduced revenue of the PDP.

The total state budget revenues amounted to 19,360 million euros, increased by 1,110 million euros or 6.1% against the target.

Tax revenue amounted to € 16,081 million, up € 1,789 million or 12.5% ​​from the target set out 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 recoveries amounted to € 1,681 million, up € 423 million from the target (€ 1,258 million).

The total revenue of the Public Investment Budget (PIB) amounted to 837 million euros, reduced by 638 million euros from the target (1,475 million euros).

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

The picture of April

In particular, in April 2022, the total net revenues of the state budget amounted to 5,716 million euros, increased by 2,036 million euros compared to the monthly target, mainly due to the collection of the first installment, amounting to 1,718 million euros, from the Recovery and Resilience Fund which was estimated to be collected in February 2022. Excluding the amount from the RRF, net income increased by 318 million euros or 8.6% against the target.

Total state budget revenues amounted to 6,094 million euros, an increase of 2,179 million euros compared with the estimate for the corresponding period included in the budget report 2022. Excluding the above amount from the RRF, total revenues show an increase of 461 million euros against the target.

Tax revenues amounted to € 3,992 million, up € 506 million or 14.5% from the target, due to better performance in tax collection this year, as mentioned above.

Revenues amounted to € 378 million, up € 142 million from the target (€ 235 million).

The total revenue of the Public Investment Budget (PIB) amounted to 255 million euros, increased by 25 million euros compared to the target (230 million euros).

Expenses

The State Budget expenditures for the period January – April 2022 amounted to 21,007 million euros and are reduced by 958 million euros compared to the target (21,965 million euros), which is included in the presentation report of the 2022 Budget.

In the part of the Regular Budget there is a lag behind the target by 1.448 million euros, mainly due to the delay in payments of armaments programs by 458 million euros. There is also a lag in the current transfers to EU organizations and states. by 149 million euros and the forfeiture of guarantees by 203 million euros.

Payments in the area of ​​investment expenditure amounted to 2,569 million euros, showing an increase of 490 million euros compared to the target of 2,079 million euros.

Payment image

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

(a) the support of small and micro-enterprises affected by COVID-19 in the Regions amounting to 153 million euros from the EDP;

b) the public contribution for the repayment of business loans of affected borrowers amounting to 66 million euros from the EDP;

c) the working capital subsidy to tourism enterprises amounting to 42 million euros from the EDP;

(d) the special purpose compensation expenditure of 101 million euros paid by the Ministry of Labor and Social Affairs (category of transfers); and

e) the additional grant to the EOPYY amounting to 60 million euros and to the hospitals and the DYPE amounting to 80 million euros.

The provisional picture of the main payments of the measures for dealing with the energy crisis, concerning the Central Administration, for the period January – April, is as follows:

(a) a grant to the Welfare Benefits and Social Solidarity Organization of 177 million euros, broken down into:  90 million euros for the additional installment of the child allowance, EUR 46 million for the payment of the increase in the income support of the beneficiaries of the minimum guaranteed income; million for emergency financial assistance for the disabled, and EUR 7 million for the increase in the pension of the uninsured elderly,

(b) a grant to the Information Society to cover the cost of fuel consumption of 131million euros ;

c) a grant to Hellenic Agency for the Payment of Community Aid amounting to 50 million euros to address the consequences for Greek livestock due to international developments; and

d) special purpose compensation for the support of TAXI operators and drivers amounting to 4 million euros.

The state budget expenditures for the period January – April 2022 are reduced, compared to the corresponding period of 2021, by 2,915 million euros.