The Greek state budget has witnessed a significant turnaround in the first half of 2023, as the National Economy and Finance Ministry reported on Tuesday. Despite the challenges posed by the ongoing economic recovery, the budget has exceeded expectations and achieved remarkable progress.
In the January-June period, the state budget recorded a primary surplus of 2.116 billion euros, a considerable increase compared to the initial target of a surplus of €415 million. This contrasts sharply with last year's period, when the budget suffered a primary deficit of €3.425 billion.
Moreover, the general government balance registered a deficit of €2.462 billion in the first half of 2023, well below the budget target of a deficit of €4.265 billion. This marks a significant improvement from the deficit of €6.548 billion recorded during the same period in the previous year.
The positive performance can be attributed to robust net revenue, which reached €30.875 billion, surpassing the target by 4.1%. Regular budget revenue also displayed impressive growth, amounting to €34.263 billion, exceeding the target by 5.5%.
Tax revenue played a vital role in boosting the budget, with an impressive total of €27.214 billion, 8.6% higher than the target. Notably, VAT revenue reached €11.042 billion, exceeding the target by €571 million. Although special consumption tax revenue fell slightly short of the target, property taxes and income tax revenue surpassed expectations by €53 million and €787 million, respectively.
Revenue in the transfers category, amounting to €4.407 billion, fell slightly below the target by €40 million. Meanwhile, revenue in the sale of goods and services category experienced a shortfall of €1.508 billion, totalling €441 million.
Tax returns contributed positively to the budget, totalling €3.388 billion, surpassing the target by €586 million. On the other hand, Public Investment Program revenue slightly missed the target, amounting to €2.183 billion.
While budget spending in January-June reached €33.337 billion, falling €596 million below the target, it showed an increase of €530 million compared to the same period in 2022.
The impressive budgetary performance reflects the resilience and determination of the Greek government to navigate through economic challenges and steer the country towards stability and growth. The surplus achieved is a positive sign for the economy, providing hope for a brighter future for Greece in the second half of 2023 and beyond.
