State Budget: 3.9-bln-euro primary surplus vs 851-mln euro primary deficit target

ΣΧΕΤΙΚΑ ΑΡΘΡΑ

Budget execution: Tax revenues 605 mln euros over target for Jan-Nov

Debate on 2024 state budget continues for third day in parliament plenary

Five-day debate on 2024 state budget begins on Wednesday

According to the data available for the execution of the State Budget on a modified cash basis, the State Budget balance for the period of January – December of 2023 presented a deficit of 3,760 million Euros, against a target of a deficit of 8,338 million Euros that has been incorporated for the same period of 2023 in the 2024 Budget introductory report and a deficit of 11,656 million Euros for the same period of 2022.

The State Budget Primary Balance on a modified cash basis amounted to a surplus of 3,920 million Euros, against the primary deficit target of 851 million Euros and the primary deficit of 6,652 million Euros performed at the same period of the previous year.

Regarding the observed difference between the State Budget Primary Balance and its target, on a cash basis, it is noted that it concerns amounts that do not affect the fiscal result of General Government in ESA terms, which is calculated after the addition of the General Government entities’ fiscal result and the accrual adjustors.

More specifically, an amount of 1,687 million Euros of Recovery & Resilience Facility revenues that was collected in December, while it was initially estimated to be collected during the first quarter of 2024, as well as, the main part of the 2,767 million Euros under execution of State expenditure, (for example the time differentiation of the cash payments for military procurements, the transfers to General Government entities, etc), do not affect the Primary Balance on accrual basis.

It is noted that State Budget Net Revenues for the twelve-month period, while taking into account tax refunds, presented an increase of 292 million Euros against the target. The aforementioned increase was mainly caused by November revenues, since December revenues were near the target. This increase was counterbalanced by the PIB expenditure increase of 362 million Euros against the target.

For the period of January – December of 2023, State Budget net revenues amounted to 67,005 million Euros, showing an increase of 1,810 million Euros against the target of the corresponding period, which is included in the 2024 Budget introductory report. This overperformance is mainly due to the collection in December 2023 of the amount of 1,687 million Euros from the Recovery and Resilience Facility (RRF), which was estimated to be received in March 2024. Excluding this amount from RRF, net revenues showing a increase of 123 million Euros or 0.2% against the target, despite the reduced PIB revenues.

State Budget total revenues amounted to 73,998 million Euros, 2,126 million Euros or 3.0% higher against the target.

Source: ANA – MPA

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