Primary surplus EUR 3.7 bn in first 7 months of 2015

Primary surplus EUR 3.7 bn in first 7 months of 2015

Athens, August 27, 2015/ Independent Balkan News Agency

By Spiros Sideris

The shortfall in state revenues surpassed EUR 4 bn in the 7 months January – July 2015, however the dramatic containment of costs led to a primary surplus. The shortfall in revenues is mainly due to the extension of submission of the first installment of income tax of corporate and natural persons and the non-certification and payment of the first installment of ENFIA 2015.

According to the definitive execution elements of the state budget on a modified cash basis for the period January – July 2015, published Wednesday by the General Accounting Office, the primary surplus stood at EUR 3.71 bn, compared to EUR 2.2 bn primary surplus for the same period in 2014 and the target for a primary surplus of EUR 2.98 bn. The budget deficit stood at EUR 840 mln, compared to a deficit of EUR 1.73 billion in the same period of 2014 and against a target deficit of EUR 1.37 bn.

The amount of net revenue of the state budget amounted to EUR 26.87 bn, down by EUR 3.942 bn or 12.8% against the target. The net revenues of the ordinary budget amounted to EUR 24.83 bn, down by EUR 4 bn or 14.2% against the target. The revenue reimbursements totaled EUR 1.546 bn, a drop of EUR 318 mln against the target (EUR 1.8 bn).

In particular, the revenue shortfall for the period January-July 2015 against the target is due to:

– the extension for filing the statement and payment of the first installment of the personal income tax.

– the extension of filing the statement and payment of installments of corporate income tax.

– the non-verification and payment of the first installment of ENFIA 2015.

– the non-collection of revenue from the transfer of yield from the withholding of government bonds in the portfolios of central banks of the Eurosystem (ANFAs & SMPs) of EUR 1.72 bn.

Individually, in July 2015 the total net revenues of the state budget amounted to EUR 5 billion, down by EUR 3 billion or 38% compared to the monthly target.

For July 2015 a significant shortfall against the target showed:

– The personal income tax by EUR 448 mln or 29%.

– Property taxes by EUR 671 million.

– Other direct taxes over EUR 152 million or 28%.

– VAT for oil products by EUR 62 mln or 27%.

– Other transactions taxes by taxes 33 mln or 33%.

– Other non-tax revenues by taxes 72 mln or 23%.

The state budget expenditure amounted, in the 7-month period, to taxes 27.71 bn and are reduced by EUR 4.47 bn against the target (EUR 32.19 bn).

In particular, the expenditure of the regular budget amounted to EUR 26,51 bn, down by EUR 3.1 bn against the target, mainly due to a reduction in primary expenditure of EUR 2.88 bn of cash costs for armament programs by EUR 358 mln and the slump of guarantees by EUR 81 mln.

The expenditure of the regular budget appear reduced compared to the same period in 2014, by EUR 1.78 bn or 6.3%, despite the fact that an extra EUR 39 mln have been paid for NHS doctors’ curracies, EUR 50 mln for agriculture subsidies, EUR 41 mln for returns in the European Union and EUR 16 mln for emergency financial assistance to address the humanitarian crisis.

The revenues of the Public Investment Budget amounted to EUR 2 BN, up by EUR 155 mln against the target. The expenditure of the Public Investment Budget amounted to EUR 1.19 bn, down by EUR 1.37 bn against the target (EUR 2.57 bn), and decreased by EUR 1.76 bn compared to the same period last year.

The reduced size of the state budget expenditures is mainly due to the redefinition of cash planning, in accordance with the prevailing restrictive liquidity conditions.