PIP, tax rebates hit in effort to show primary surplus surfeit

The January-October budget data reveal that the primary surplus overrun of 1.4 billion euros, to 6.4 billion, is due to the dramatic reductions in public investment and tax rebates.

While provisional figures had shown that tax rebates had missed their target by 770 million euros, the revision of the figures (based on the 2019 draft budget) released on Monday puts the rebates within target: That’s because the target has been lowered.

The Public Investment Program (PIP) presents a similar picture: The state has spent 1.3 billion euros less in the year to end-October and it is unlikely this will be covered in the few weeks left. Last year the program ended with a shortfall of 800 million euros.

Grants to state entities have also suffered, as by end-October only 69.3 percent of the annual allocation had been handed out to the Manpower Organization (OAED), while only 54.7 percent of funds targeted for social protection had been doled out.