Tax revenues beat their target

The increase in tourism and the higher-than-expected takings from income tax and the Single Property Tax (ENFIA) led to tax revenues in the first nine months of the year coming in above the target, amounting to 895 million euros. This is 2.7% more than the target set in the summer by the midterm fiscal plan for 2022-25.

According to the detailed figures on the course of the budget in the year to end-September, the corporate income tax due was €346 million, or 19.5%, above the target set, while the income tax due from individuals was €262 million or 3.5% higher, the value-added tax of various products and services was €116 million or 1.1% higher, and other taxes on goods were €81 million or a remarkable 209.4% higher.

Furthermore, regular property taxes rose by €135 million or 14.1%, of which ENFIA was €131 million or 14% higher and property transfer tax €574 million or 9.1% higher.

In total the state budget posted a deficit of €10.15 billion, against a target for €13.01 billion, and a deficit of €11.27 billion in the same period last year.

The primary deficit amounted to €5.96 billion, against a target for €8.855 billion, and a primary deficit of €7.01 in January-September 2020.

In September alone tax revenues came to €4.96 billion, about €1.08 billion or 27.8% higher than the monthly target. According to a Finance Ministry statement, this is due to the increased takings from income tax declarations and the extension granted to the deadline for submissions and the payment of the first and second income tax tranches by September 17.

At the same time there was also a notable decline in state budget spending: Expenditure in the year to end-September lagged its target by €1.5 billion or 2.9%, mostly attributed to the postponement of a number of subsidy disbursements. The exception was the category of defense spending, which exceeded its target by some €683 million.

Payments toward the Public Investments Program and the Recovery Fund missed their target by €414 million.