Implementation of the budget rejects IMF’s objections

Implementation of the budget rejects IMF’s objections

The figures of the budget, as announced by the Treasury, exceeded the target, with the primary surplus amounting to € 2,751 billion when the target was a surplus of € 1,307 billion, which is more than twice as high.

Overall, the net revenue of the regular budget is increased by € 675 million compared to the target, while on the expenditure front the sub-calculation amounts to € 112 million in the ordinary budget and € 310 million to the state budget.

The above comes to reinforce the economic staff’s argument for exceeding this year’s target for a primary surplus of 3.5% of GDP, against any IMF pressure on the simultaneous implementation of pension cuts and tax-free payments from 2019 onwards.

The “X-ray” of the revenue

According to the data, the state budget net revenue amounted to € 8,975 million, showing an increase of € 1,133 million or 14.5% against the target. The net revenue of the regular budget amounted to € 8,299 million, increased by € 675 million or 8.9% against the target.

In particular, in the January-February 2018 period, an increase against the target was observed in the following main revenue categories:

(a) Personal income tax of € 74 million or 6.4%,

(b) Corporate income tax of € 13 million or 123.9%;

(c) Property taxes of € 57 million or 15.5%;

(d) Direct WTO taxes of € 75 million or 14.9%;

(e) Other direct taxes of € 26 million or 11.6%,

(f) VAT of other € 31 million or 1.4%

(g) Other excise duties (tobacco, etc) by € 10 million or 2.6%

(h) Indirect WTO taxes of € 115 million or 37.1%;

(i) Earnings from EU by € 116 million or 1320.5%,

(j) Other non-tax revenue of € 305 million or 31.3%

(k) NATO revenue by € 34 million.

Revenues over the same period were decreased against the target in the following main categories:

(a) Income tax of special categories by € 31 million or 12, 7%,

(b) VAT on petroleum products by € 14 million or 4.1%; c) CPC energy products by € 58 million or 7.9%, Revenues (excluding reimbursements from the debt settlement program) amounted to € 719 million, an increase of € 110 million compared to the target (€ 609 million).

Public Investment Budget (PIB) revenue amounted to € 675 million, up by € 458 million against the target.

State expenditure

State expenditure for January – February 2018 amounted to € 7,433 million and decreased by € 310 million against the target (€ 7,743 million). In particular, ordinary budget expenditure amounted to € 7,246 million and decreased by € 112 million against the target.

State budget expenditure is reduced by € 476 million compared to the corresponding period of 2017.

An additional € 119 million has been paid for the Social Solidarity Income and € 35 million for armament programmes of the National Defence ministry.

Expenditure for the Investments and Development (NSRF) amounted to € 187 million, down by € 198 million against the target…. / IBNA