Greece's fiscal performance for the period of January to July 2024 has painted a positive picture, with tax revenues and the primary budget surplus significantly surpassing initial projections.
According to the latest state budget execution data, tax revenues exceeded targets by a substantial 2.19 billion euros, reaching a total of 36.866 billion euros. This marks a 6.3% increase over initial estimates.
The primary budget surplus, a key indicator of fiscal health, also outperformed expectations, reaching 5.665 billion euros. This figure far exceeds the target of 1.655 billion euros and represents a notable improvement compared to the 3.558 billion euros surplus recorded during the same period in 2023.
Despite these positive developments, the overall state budget balance for January-July 2024 showed a deficit of 139 million euros. However, this is a significant improvement compared to the target deficit of 3.745 billion euros outlined in the 2024 Budget, and the deficit of 1.435 billion euros recorded in the corresponding period of 2023.
The Ministry of National Economy and Finance has attributed part of the discrepancy in tax revenue collections, amounting to 647 million euros, to fiscal results from 2023.
Additionally, payments deferred to social security funds and defense spending do not impact the 2024 fiscal results. Excluding these amounts, the primary budget surplus target was surpassed by 1.040 billion euros for the January-July period.
The ministry also emphasized that the reported primary surplus pertains only to the Central Administration's results and does not include the broader General Government sector.
Net state budget revenues for the period amounted to 39.187 billion euros, exceeding the target by 863 million euros or 2.3%. This increase was influenced by factors such as the earlier-than-expected receipt of funds from the Recovery and Resilience Facility and the collection from the Egnatia Odos motorway concession contract.
Overall, total state budget revenues reached 43.085 billion euros, exceeding the target by 867 million euros or 2.1%. This strong fiscal performance in the first seven months of 2024 suggests that Greece's economy is on a path to recovery, bolstered by higher-than-anticipated tax collections and the receipt of funds from external sources.