GR US

Greek State Budget Records Primary Deficit of €5.5B in Jan-Aug

Ευρωκίνηση

Greek Finance Ministry. (Photo by Eurokinissi. Christos Bonis)

ATHENS -- The Greek state budget recorded a primary deficit of 5.484 billion euros in the January-August period this year, from a budget target for a primary surplus of 1.152 billion and a primary surplus of 2.906 billion euros in the same period last year, the finance ministry said in a report on Friday.

The report said that the general government balance showed a deficit of 9.681 billion euros in the eight-month period from a budget target for a deficit of 2.892 billion euros.

More specifically, net budget revenue was 30.050 billion euros, down 7.4 pct from targets, reflecting a decline in economic activity because of the pandemic crisis. Regular budget revenue was 33.382 billion euros, down 5.4 pct from targets.

Tax revenue was 26.996 billion euros, down 11.9 pct from targets. Tax revenue exceeded targets in the categories of: current taxes (8.5 pct), transfers (52.1 pct), other current revenue (69.7 pct). On the other hand, tax revenue fell short of targets in the categories of: VAT on oil products (-27.5 pct), VAT on tobacco products (-6.1 pct), VAT on other products and services (-15.6 pct), special consumption tax on energy products (-10.7 pct), special consumption tax on tobacco (-6.5 pct), special consumption tax on other products (-25.6 pct), stamp tax (-10.0 pct), taxes in financial and capital exchange (-19.5 pct), car registration taxes (-32.4 pct), other taxes on goods (-36.8 pct), other taxes on services (-17.9 pct), taxes on imports (-22.5 pct), property taxes (-11.3 pct), income tax (-5.1 pct), corporate tax (-15.3 pct), capital taxes (-29.8 pct) and taxes from selling fixed assets (-98.5 pct).

Tax returns totaled 3.332 billion euros in the eight-month period, up 505 million from targets, while Public Investment Programme revenue was 3.807 billion, up 1.294 billion from targets.

State budget spending was 39.731 billion euros in the January-August period, up 4.385 billion from targets, boosted by extra spending to deal with the consequences of the pandemic crisis. Regular budget spending was up 5.013 billion euros compared with the same period last year.

In August, state budget revenue was 6.160 billion euros, up 1.777 billion from targets, while regular budget revenue was 6.657 billion, up 1.795 billion from monthly targets.

Tax revenue totaled 4.326 billion euros, down 67 million from monthly targets. Tax returns totaled 497 million euros, up 18 million from targets, while Public Investment Programme revenue grew to 2.124 billion euros. State budget spending was 4.975 billion euros, down 214 million from targets due to a lower-than-expected spending in the Public Investment Programme.