Greece: EUR 7.008 bn budget deficit in the first half of 2020

Greece: EUR 7.008 bn budget deficit in the first half of 2020

The state budget registered a primary deficit of 7.008 billion euro in the nine months January – September 2020 against a target for a primary surplus of 2.568 billion euro, reflecting on the budget figures the significant impact caused by the pandemic.

Specifically, tax revenues reached 3.942 billion euro and were reduced compared to the pre-pandemic target by 1.904 billion euro, of which an amount of 1.6 billion euro is estimated to be due to deferrals of tax liabilities (postponement of the first installment of ENFIA for the end of October, reduction of advance payment of income tax of legal entities affected by Covid 19, more installments for the income tax of natural and legal persons).

More specifically, in terms of the implementation of the budget, in the nine month period of January – September 2020, there is a deficit in the state budget balance (general government) of 11.265 billion euro against a target for a deficit of 1.544 billion euro.

The amount of net revenues of the state budget amounted to 33.501 billion euros, showing a drop of 4.719 billion euro or 12.3% compared to the target included in the presentation report of the 2020 Budget.

Total state budget revenues amounted to 37.587 billion euro, down 4.008 billion euro or 9.6% from the target.

Tax revenues amounted to 31.032 billion euro, reduced by 5.454 billion euro or 14.9% compared to the target included in the 2020 budget report.

The exact distribution between the categories of revenues of the state budget will take place with the issuance of the final bulletin, the Ministry of Finance clarifies.

Revenue returns amounted to 4.086 billion euro, up 711 million euro from the target.

Public Investment Budget (PDB) revenues amounted to 3.831 billion euro, up 1.158 billion euro from the target.

In particular, in September 2020 the total net revenue of the state budget amounted to 3.346 billion euro, down by 2.419 billion euro compared to the monthly target.

Total state budget revenues amounted to 4.100 billion euro, down from the monthly target of 2.213 billion euro.

Tax revenue was 3.942 billion euro, down 1.904 billion euro from the monthly target set out in the 2020 Budget Report. However, according to the updated monthly estimates in the Stability Program, tax revenue is down for September 2020 by 1.429 billion euro.

The shortage in revenue for the month of September from the above is estimated at 1.6 billion euro.

Revenue returns for September 2020 amounted to 755 million euro, an increase of 206 million euro against the monthly target (549 million euro).

Public Investments Programme (PIP) revenues amounted to 23 million euro, down 137 million euro from the monthly target.

The state budget expenditures for the period January – September 2020 amounted to 44.766 billion euro, up by 5.002 billion euro against the target.

The state budget expenditures for the period January – September 2020 are increased compared to the corresponding period of 2019 by 6.122 billion euro, with the largest increase registered in the PIP, which showed increased expenditure by 4.018 billion euro, compared to the corresponding period last year, mainly due to the aforementioned reasons.

State budget expenditures in September 2020 amounted to 5.035 billion euro, up by 617 million euro against the target, mainly due to the over-execution of the PIP by 529 million euro./ibna