Greek state budget has primary surplus of 916 mln euros in Jan-May 2019

Greece's state budget had a primary surplus of 916 million euros in five-month period January-May 2019, against a target of a primary deficit of 1.447 billion euros and up from a surplus of 853 million euros for the same period in 2018, the Greek finance ministry announced in a report on the execution of the state budget released on Tuesday.

"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 - May of 2019 presented a deficit of 1,760 million Euros, against a target of a deficit of 4,050 million Euros that has been incorporated for the same period of 2019 in the 2019 Budget introductory report and a deficit of 1,000 million Euros for the same period of 2018," the finance ministry said.

The report said that state budget net revenues amounted to 20,186 million euros, showing an overperformance of 2,546 million euros or 14.4 pct against the target of 2019, which is included in the Budget 2019 introductory report.

State budget total revenues amounted to 21,933 million Euros, 2,703 million euros or 14.1 pct higher than the target. Particularly, during the period of January-May 2019 there was an increase against the target in the following main revenue categories:

a) VAT on other goods and services by 664 million euros or 11.6 pct, including 271,6 million euros of VAT received regarding the extension of the concession rights of the Athens International Airport,

b) Εxcise Tax on Fuel by 29 million euros or 1.7 pct,

c) Other taxes on services by 96 million euros or 14.1 pct,

d) Taxes and tariffs on imports by 17 million euros or 16.8 pct,

e) Property Taxes by 39 million euros or 7.5 pct,

of which: Unified Property Tax (ENFIA) by 29 million euros,

f) Other Taxes on Production by 36 million euros or 8.1 pct,

g) Corporate Income Tax (CIT) by 43 million euros or 11.9 pct,

h) Capital taxes by 43 million euros or 81.0 pct,

i) Transfers by 869 million euros or 71.4 pct, including an amount of 644 million euros received in May 2019 regarding ANFAs. There was no projection for this amount in Draft Budget 2019,

j) Sales of goods and services by 1,107 million euros or 436.9 pct, including an amount of 1,119 million euros (excluding VAT), regarding the extension of the concession rights of the Athens International Airport,

k) Other current revenue by 117 million euros or 19.6 pct.

During the same period there was an underperformance against the target in the following main revenue categories:

a) VAT on Fuel by 14 million euros or 1.7pct,

b) VAT on Tobacco by 11 million euros or 4.1 pct,

c) Excise Tax on Tobacco by 65 million euros or 7.3 pct,

d) Stamp Duties by 21 million euros or 19.4 pct,

e) Personal Income Tax (PIT) by 72 million euros or 1.9 pct,

f) Other Income Tax by 64 million euros or 12.9 pct,

g) Other current taxes by 101 million euros or 15.9 pct.

Tax refunds amounted to 1,747 million euros, 157 million euros higher than the target (1,591 million euros).

PIB revenues amounted to 997 million euros, 67 million euros higher than the target.

Particularly, in May 2019 the State Budget net revenues amounted to 4,229 million euros, 1,239 million euros higher than the monthly target.

State Budget total revenues amounted to 4,785 million euros, 1,297 million euros higher than the monthly target.

The main revenue categories that were increased against the monthly target in May 2019 are the following:

a) VAT on other goods and services by 252 million euros, due to the extension in April of the deadlines of the VAT payment,

b) Εxcise Tax on Fuel by 26 million euros,

c) Excise Tax on Tobacco by 13 million euros,

d) Property Taxes by 12 million euros,

of which Unified Property Tax (ENFIA) by 10 million euros,

e) Other Taxes on Production by 15 million euros,

f) Corporate Income Tax (CIT) by 27 million euros,

g) Tranfers by 766 million Euros, due to the aforementioned amount of 644 million euros regarding ANFAs,

h) Sales of goods and services by 210 million euros, from the payment of the remaining amount of 215 million euros concerning the extension of the concession rights of the Athens International Airport,

i) Other current revenue by 26 Million euros.

The main revenue categories that were decreased against the monthly target in May 2019 are the following:

a) Personal Income Tax (PIT) by 26 million euros,

b) Other Income Tax by 33 million euros,

c) Other current taxes by 20 million euros.

PIB revenues amounted to 105 million euros increased by 31 million euros against the target. Tax refunds in May 2019 amounted to 556 million euros, increased against the monthly target (497 million euros) by 59 million euros.

State Budget expenditures for the period of January - May of 2019 amounted to 21,945 million wuros, 255 million euros higher than the target (21,690 million euros). This difference is caused mainly due to the fact that 971 million Euros were transferred to EFKA for the payment of 13th pension. Counter wise, appropriations of 982 million euros have been incorporated to 2019 figures so as to cover the one-off payments of law 4575/2018 that were not completed in 2018 (in non-allocated expenditures). It should be noted that the one-off payments that took place until May of 2019, concerning ministerial decisions issued in 2018, amounted to 325 million euros and they are included in line “Compensation of Employees”.

Moreover, the expenditure of the major category 'Social benefits' is increased against the target by 217 million euros, mainly due to the 172 million euros of the Social Solidarity Income payment for the first quarter of 2019, which was initially predicted in the category “Transfers to SSFs”. The latter expenditure is included in the transfers’ category since April 2019, according to article 1, CMD Δ13/οικ./54653/2701/18-10-2018 (Government Gazette 4837 B’).

Non allocated expenditure includes among others, contingency reserve allocations, which are reallocated to other major categories throughout the year, for the realisation of the relevant expenditure.

PIB expenditure amounted to 1,165 million Euros, showing an underperformance against the target by 140 million Euros.

State budget expenditures for the period of January - May of 2019 were increased compared to the respective period of 2018 by 2,604 million euros, mainly due:

a) to the increased transfers to SSFs by 1,214 million Euros mainly for the payment of the 13th pension and the payment of family allowances which now appear in "Transfers", while in 2018 were in the category "Social Benefits"

b) the increased interest payments by 822 million Euros,

c) the additional salaries by 329 million Euros (mainly the one-off payments of law 4575/2018) and

d) the PIB expenditure by 372 million Euros.

Particularly, in May 2019 State Budget expenditures amounted to 4,948 million euros, 1,024 million euros higher than the monthly target.