Both revenues and spending miss targets

State revenues failed to make the target in the very first month of the year; whispers of revenue fatigue in the corridors of the Finance Ministry are now fully reflected in the official figures issued on Friday by the State General Accounting Office.

January data revealed a 152-million-euro revenue shortfall, a development that generates major worries given that this is an election year and as such inspections and confiscations will likely be reduced. Of course this remains to be seen, as the the tax administration now operates independently.

Another major concern is related to the increasing number of taxpayers who are unable to meet their obligations. Last year’s record figure of 5.5 billion euros collected as a result of bank deposit confiscations and debt settlements is unlikely to be repeated, due to the fact that the tax authorities are finding that an increasing number of state debtors have empty bank accounts.

At the same time state expenditure over the course of the month was 767 million euros below the budget target, which led to a primary surplus of 603 million euros at end-January 2019.