August revenue in budget moved to satisfactory with the increase in the specific month reaching 7.6%.
And all this if we take into account that there were two extensions in the submission of tax returns and consequently the payment of income tax for a large part of taxpayers, which was carried over to September. Deviation from the target is marginal.
Also in the 8 months there is a deficit of 10,523 million euros against a target for a deficit of 13,487 billion euros
Revenues from tourism, which show increased, for July and August, as well as the repayment of income tax in September are expected to be reflected in the revenues of the coming months and therefore the relevant forecasts will be published in the draft budget submitted to Parliament on early October.
The announcement of the Ministry of Finance for the execution of the budget for the period January – August 2021 results as follows:
“According to the provisional data on the implementation of the state budget, on a modified cash basis, for the period January – August 2021, there is a deficit in the state budget of 10,523 million euros against a target for a deficit of 13,487 million euros included for 2021 in the explanatory report of the MTEF 2022-2025 and a deficit of 9,681 million euros in the corresponding period of 2020. The primary result was a deficit of 6,385 million euros, compared to a target for a primary deficit of 9,405 million euros and a primary deficit of 5,484 million euros. euros for the same period in 2020.
The amount of net revenues of the state budget amounted to 34,682 million euros, showing an increase of 2,450 million euros or 7.6% compared to the estimate for the corresponding period included in the explanatory report of the MTEF 2022-2025. However, the increased revenue for the eight months includes: (a) the advance, in August 2021, from the Recovery and Resilience Fund (RRF) of € 2,310 million projected to be collected in September 2021, and (b) the revenue from ANFA’s, amounting to 644 million euros, collected in July 2021 which were not foreseen in the MTEF 2022-2025. Therefore, not including the above amounts, the net income shows a decrease of 504 million euros or 1.6% compared to the estimate included in the explanatory report of the MTEF 2022-2025, mainly due to the reduced revenue of the EDP.
The total state budget revenues amounted to 37,506 million euros, increased by 2,361 million euros or 6.7% against the target.
Revenues from taxes amounted to 28,758 million euros, reduced by 142 million euros or 0.5% compared to the target included in the explanatory report of the MTEF 2022-2025.
Revenue refunds at 2,824 million euros
The exact distribution between the categories of revenues of the state budget will be made with the issuance of the final bulletin.
Revenue recoveries amounted to € 2,824 million, down € 89 million from the target (€ 2,912 million).
Revenue from the Public Investment Budget (PIP) amounted to € 3,404 million, down € 292 million from the target.
In particular, in August 2021, the total net revenues of the state budget amounted to 7,713 million euros, increased by 3,085 million euros compared to the monthly target, mainly due to the collection of the advance of 2,310 million euros from the Recovery and Sustainability Fund. It is expected to be collected in September 2021 as mentioned above, as well as the increased revenues of the PDE.
The total state budget revenues amounted to 8,045 million euros, increased against the monthly target by 3,012 million euros.
Revenues from taxes amounted to 4,383 million euros, reduced by only 41 million euros or 0.9% compared to the target included in the explanatory report of the MTEF 2022-2025, taking into account the extension given for the submission of tax returns to natural and legal persons and the consequent extension of payment of the first and second installment until September 17, 2021.
Revenue returns for August 2021 amounted to € 332 million, down € 73 million from the monthly target (€ 405 million).
PDE revenues amounted to 1,227m euros, up 735m euros from the monthly target.
Budget expenditures in the period January – August 2021 at 45,205 million euros
The State Budget expenditures for the period January – August 2021 amounted to 45,205 million euros and are reduced by 514 million euros or 1.1% compared to the target (45,719 million euros), which is included in the explanatory report of the MTEF. 2022-2025.
The under-execution of the Regular Budget of 215 million euros is mainly due to the deferral of grants to OKA amounting to 347 million euros. Full absorption of the relevant funds is expected by the end of the year.
On the contrary, the cash payments related to the armament programs of the Ministry of National Defense (category of acquisitions of fixed assets), increased in relation to the initial target by 760 million euros, to serve the relevant contracts. Payments under the EDP and the Recovery and Resilience Fund decreased by 299 million euros or 5.0% compared to the target. It is pointed out that the expenditures of the Recovery and Resilience Fund take place, following procedures similar to the national part of the EDP.
The provisional picture of the main payments of the measures against the pandemic for the period January – August, is as follows:
(a) the cost of special purpose compensation due to the COVID-19 (employee) pandemic of EUR 1,896 million, paid by the Ministry of Labor and Social Affairs (transfer category);
(b) a repayable advance of EUR 1,618 million from the category of transfers and EUR 1,108 million from the EDP;
(c) state compensation to landlords of EUR 715 million due to reduced rents they receive;
d) the grant to OPEC amounting to 225 million euros, for the repayment of loans affected by the pandemic;
(e) the support of small and micro-enterprises affected by COVID-19 in the Regions amounting to EUR 548 million from the EDP;
f) the subsidy of interest on loans to small and medium-sized enterprises amounting to 104 million euros from the EDP;
(g) expenditure on the business guarantee fund of EUR 220 million from the EDP;
(h) the working capital subsidy to catering establishments for the supply of raw materials amounting to EUR 113 million from the EDP; and
i) the public contribution for the repayment of business loans of affected borrowers amounting to 102 million euros from the EDP.
The state budget expenditures for the period January – August 2021 are increased compared to the corresponding period of 2020 by 5,474 million euros, mainly due to the increased expenditures for measures against the pandemic and the increased payments of armaments programs in the regular budget. ».
Theodoros Skylakakis: The revenues of August moved satisfactorily
The Deputy Minister of Finance, Theodoros Skylakakis, expresses his satisfaction with the course of the revenues in August. Specifically, it states:
“The revenues for the month of August moved satisfactorily, as they show a deviation from the target much smaller than the effects of the postponement of the two installments of income tax, which were to be collected by the end of August (200-250 million euros). The course of tourism in July and August and the repayment of income tax liabilities are expected to be reflected in the revenues of the coming months and the relevant forecasts will be made public in the draft budget submitted to Parliament in early October.
Source of RES EIA