The state budget recorded a primary surplus of almost €3 billion on a modified cash basis in the January-March 2024 quarter, according to data released by the Ministry of National Economy and Finance, with tax revenues showing an increase of 2.4% against the target.
It is noted that the biggest part of the difference in the Primary Balance surplus against the target, in cash terms, is not counted in the 2024 Primary Balance in fiscal terms. Indicatively, €159 million relating to the Recovery and Resilience Facility revenues (RRF), do not affect the outcome in fiscal terms, while a significant part of the difference in tax revenues of €647 million, is accounted for, in the fiscal result of 2023.
Therefore, the Primary Balance in fiscal terms differs significantly in comparison to the result in cash terms. Furthermore, it is pointed out that the aforementioned concerns the Primary Balance of the Central Administration and not the whole of the General Government, which also includes the fiscal results of legal entities and the sub-sectors of LGs and SSFs. For the period of January – March 2024, State Budget net revenues amounted to €16,790 million, showing an increase of €398 million, or 2.4%, against the target of the corresponding period, which is included in the 2024 Budget introductory report.
However, the target of the Budget introductory report includes the amount of €1,797 million from Recovery and Resilience Facility (RRF), while an amount of €159 million has been received. Accordingly, with the exception of the above amount, the net revenues are showing an overperformance of €2,036 million, or 14%, against the target. This increase is mainly due to: a) the increased tax revenues by €654 million, after deducting tax refunds; and b) the increased PIB revenues of €1,029 million.
TAXES
Tax revenues amounted to €14,920 million, €674 million or 4.7% higher against the target which is included in the 2024 Budget introductory report. This overperformance is mainly due to the better performance of the previous year’s income taxes of natural and legal persons collected in installments until the end of February 2024, as well as, the better performance in the collection of the current year’s taxes (VAT, excise taxes etc.). Tax refunds amounted to €1,719 million, €20 million higher than the target (€1,698 million). PIB revenues amounted to €2,336 million, €1,029 million higher than the target (1,307 million Euros).
A more precise allocation among the revenue categories of the State Budget will take place when the final Bulletin is issued. Particularly, in March 2024 the State Budget net revenues amounted to €4,143 million, €1,172 million lower than the monthly target due to the non-collection of an amount of €1,797 million from the Recovery and Resilience Facility (RRF), as mentioned above.
Excluding this, net revenues show an overperformance of €625 million which is mainly attributed to the reduction in tax refunds €by 414 million due to the fact that high amounts of tax refunds were made in February, while they were initially estimated for March. Tax revenues amounted to €3,611 million, €184 million or 4.8% lower against the target which is included in the 2024 Budget introductory report. Tax refunds amounted to €511 million, €414 million lower than the target (€925 million). PIB revenues amounted to €704 million, €278 million higher than the target (€426 million ).
EXPENDITURES
State Budget expenditures for the period of January – March of 2024 amounted to €16,867 million , €343 million lower than the target (€17,210 million), which is included in the 2024 Budget introductory report. Τhey were also increased in comparison to the respective period of 2023 by €245 million, mainly due to the increased investment expenditure by €783 million.
In the Ordinary Budget the payments are shown decreased, compared to the target, by €1,007 million. This evolution is mainly attributed to the time differentiation of the transfers to SSFs by €523 million and the time differentiation of the cash payments for military procurement of Ministry of Defence by €320 million.
On the contrary, increased payments in relation to the target were presented in interest payments by €106 million and in grants to other legal entities of €227 million. More specifically, €110 million were paid by the Ministry of Rural Development and Food for the compensation of agricultural holdings affected by flooding due to the DANIEL-ELIAS storms in September 2023, €78 million was paid by the Ministry of Infrastructure and Transportation as a grant to transportation entities (OASA, OASTH and OSE) and €69 million was paid by the Ministry of Health as a grant to the National Centralized Health Procurement Authority (EKAPY) to cover the cost of supplying medicines for the needs of ESY hospitals and Papageorgiou hospital. Investment expenditure amounted to €2,812 million presenting increased payments by €665 million compared to the target, since both PIB and RRF were overexecuted.
