Budget shortfall at €400 mln

Despite higher revenue, increased spending needs mean that there is a shortfall in the budget estimated at €400 million, data concerning budget implementation show.

Revenue during the first half of 2024 exceeded the budget target by €1.258 billion: however, €647 million out of this sum concerns fiscal 2023. Therefore, the real excess revenue for 2024 was slightly over €600 million.

On the spending side, there is an additional €1 billion not foreseen in the 2024 budget: €400 million involves higher spending on pensions; €360 on extra compensation for the victims of the disastrous September 2023 floods in central Greece (the final sum could top €410 million, but this will be covered by the windfall tax on electricity producers); €90 million on child subsidies; €82 million in reimbursements of the special consumption tax on farmers; and €45 million on payments to doctors and other health personnel working in public hospitals.

The shortfall is the reason the government was stricter than usual in extending the tax filing deadline by only a week.