Fiscal surplus still elusive
The continuous overperformance of budget tax revenue, confirmed by the January-April data, has already been consumed, while additional expenses have arisen, competent sources in the State General Accounting Office are warning.
According to their calculations, based on last week’s January-April data, not only is fiscal space out of reach, but additional revenues of 400 million euros will be needed in the coming months to meet the target of a primary surplus of 2.1% of GDP.
A number of expenses, which had not been calculated, were added to the budget in recent months. The increase in the child benefit, €90 million for 2024, the increase in salaries for hospital doctors, €45 million, and the return of the Special Consumption Tax on agricultural fuel, €82 million, were the first few. The Public Investment Program budget is expected to require additional funding of €360 million, among others to cover the payments of investment projects in flood-wrecked Thessaly.
Finally, pensions are estimated to have an additional cost of €400 million. The government estimates around 30,000 more pensions will be awarded than expected.
