Primary budget surplus climbs to 7.4 billion in first 11 months of 2016

The primary budget surplus of the year’s first 11 months climbed to 7.4 billion euros, due to the overperformance of revenues and the containment of expenditure, according to figures released on Thursday by the Finance Ministry.

The surplus recorded is 3.8 billion euros higher than its target for the year to end-November and unless something unexpected happens on the spending side by the end of the fiscal year, it will exceed 1 percent of gross domestic product.

It appears the ministry had underestimated the collection of revenues from certain sources, such as the income tax from taxpayers and corporations.

In total the net revenues of the state budget amounted to 47.94 billion euros, posting an increase of 1.5 billion, or 3.2 percent, compared to the target for this year included in the 2017 budget. Taxpayers paid 144 million euros more in income tax, corporate tax fetched 423 million more and special consumption taxes (such as that on tobacco) brought in an additional 133 million euros.

Regular budget spending amounted to 42.44 billion euros, 1.29 billion below target, as primary expenditure missed its target by 846 million.