State budget: EUR 1.5bn primary surplus in the first 5 months

State budget: EUR 1.5bn primary surplus in the first 5 months

Athens, June 19, 2015/ Independent Balkan News Agency

By Spiros Sideris

Primary surplus instead of a deficit estimate shows the state budget in January-May, despite a shortfall in revenue according to preliminary performance data released by the Ministry of Finance. Significant was the reduction of budget expenditure.

Net revenues of the state budget dropped by EUR 546 million against the target, while state budget expenditure fell by EUR 2.628 billion. This resulted to a primary surplus of EUR 1.5 bn, against a deficit target of EUR 556 mil and a EUR 707 mil surplus over the same period last year.

It should be noted that the state budget represents approximately 50% of the general government budget, based on which the financial performance of the country is judged.

More specifically:

According to provisional figures for the implementation of the state budget in a modified cash basis, for the period January-May 2015, there is a deficit in the balance of the state budget amounting to EUR 1.399 mil euros against a deficit of EUR 1.990 bn in the respective period of 2014 and the objective for a deficit of EUR 3.481 bn, according to the statement.

The primary balance stood at a surplus of EUR 1.506 bn, compared to EUR 707 million primary surplus for the same period in 2014 and the target for a primary deficit of EUR 556 mil.

The amount of net revenue of the state budget amounted to EUR 18.626 mil, decreased by EUR 546 mil, or 2.8% against the target.

Net revenues of the ordinary budget amounted to 17.048 bn. Euro, down by 964 million. Euros or 5.4% of the target.

The revenue returns amounted to EUR 1.110 bn, a decrease of EUR 71 million against the target (EUR 1.181 bn).

PIP revenue amounted to EUR 1.577 bn, representing an increased of 417 mil against the target.

In particular, net revenues of the state budget for May 2015, according to provisional figures, were reduced by EUR 918 mil, or 24.6% against the monthly target. Net revenues of the ordinary budget were reduced by EUR 871 mil, or 24.0% against the monthly target. Returns were down against the target by EUR 170 mil or 50.6%.

The above revenue reduction for May was partly due to non-receiving of the first installment of corporate income tax which was valued at EUR 555 mil and the revenue not recovered from ANFAs that had estimated at EUR 132 mil, which had been included in May’s target (total EUR 687 mil).

The state budget expenditure amounted to EUR 20.025 bn and were lower by EUR 2.628 bn compared to the target (EUR 22.653 mil).

In particular, the expenditure of the regular budget amounted to EUR 19.053 mil and decreased by EUR 1,939 bn against the target, mainly due to a reduction in primary expenditure of EUR 1.672 bn and cash expenditures for armament programs by EUR 219 mil.

The expenditure of the regular budget is reduced compared to the corresponding period of 2014 by EUR 757 mil or 3,8%, despite the fact that an additional EUR 90 mil were paid as benefits to families with more than 4 children, EUR 30 mil for election expenses, EUR 22 mil for agricultural subsidies and EUR 106 mil for returns to the European Union.

The expenditure of the Public Investment Budget (PIB) amounted to EUR 971 mil, down by EUR 689 mil against the target (EUR 1.660 bn) and was reduced by EUR 809 mil compared to the same period last year.

Especially for May, the government budget expenditures amounted to EUR 3.700 bn and were lower by EUR 591 mil against the target, while expenditures of the ordinary budget amounted to EUR 3.550 bn and were lower by EUR 311 bn against the target.

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