Jan-Feb primary budget surplus 70% higher than expected

The Greek budget posted a primary surplus of 3.401 billion euros in January-February 2024, provisional data showed on Friday on a modified cash basis, against a target for a primary surplus of €1.981 billion (up by over 70%) and a primary surplus of €4.215 billion for the same period in 2023. Tax revenue beat its target by 9.1%.

According to the data announced by the National Economy and Finance Ministry, the balance of the state budget showed a surplus of €1.46 billion, against a target for a surplus of €101 million included in the introductory report of the 2024 budget, and a surplus of €2.308 billion in the corresponding period last year.

In the period January – February 2024, the amount of net revenues of the state budget amounted to 12,671 million euros, showing an increase of 1,593 million euros or 14.4% compared to the target included for the corresponding period in the introductory report of the 2024 budget.

This increase was mainly thanks to:

– increased tax revenues by €565 million after deduction of refunds

– increased revenues of the Public Investments Program by €732 million and

– the collection of €159 million from the Recovery and Resilience Fund that was predicted to be collected this month.

Tax revenues amounted to €11.4 billion , up by €950 million, or 9.1% compared to the target included in the indicative report of Budget 2024. This overperformance is estimated to come mainly from the better performance of personal income taxes and legal entities of the previous year that are collected in installments until the end of February 2024, as well as the best performance in the collection of the current year’s taxes (value-added tax, single consumption tax etc.).

In February alone, the total net revenues of the state budget amounted to €5.954 billion, up by €601 million compared to the monthly target. This increase is mainly thanks to increased tax revenues as well as increased Public Investment Program revenues and was achieved despite the increase observed in tax revenue refunds.