Budget outperforms in January on tax revenue

The Greek state budget recorded a surplus of 1.48 billion euros in January, up from a budget target for a surplus of €917 million and a deficit of €1.199 billion reported in January 2022, the Finance Ministry said on Tuesday in a bulletin on the January budget execution data on a modified cash basis. The 12% increase in tax takings played a major role in that fiscal result.

The primary result showed a surplus of €2.773 billion, up from a budget target for a primary surplus of €2.147 billion and a primary surplus of €15 million in the same period last year.

Net budget revenue was €7.166 billion in January, 8.75% higher than the target, while regular budget revenue was €7.611 billion, 11.1% above the target.

Tax revenue rose 12% to €4.928 billion, as VAT revenue totaled €2.277 billion, €246 million higher than the target, special consumption tax revenue was €492 million, €34 million below the target, property tax takings were €120 million, 17 million below the target, and income tax revenue was €1.475 billion, €261 million above the target. 

Tax rebates totaled €445 million, €184 million higher than the target, while Public Investment Program revenue was €601 million, €86 million above the monthly target.

Budget spending amounted to €5.686 billion, €12 million higher than the target and €632 million higher than January 2022. Public Investment Program spending totaled €648 million, €99 million below the target.

Part of the increased tax takings is associated with the decline in household and corporate deposits in January. Bank of Greece figures on Monday showed a €4.5 billion decline in bank deposits, bringing the sum back to pre-Christmas levels: They amounted to €184.1 billion at end-January, against the record high of €188.7 billion at end-December.

December’s €5 billion increase had been due to the Christmas bonus handed out to private sector workers, the major increase in credit to companies, the practice of window dressing at the end of each year in corporate finances and the subsidies paid out to farmers in December.

Household deposits declined by €1.4 billion in January to €139.8 billion, following the high consumption over the festive season. Corporate deposits eased by €3.4 billion to €40.3 billion.