The final figures of the Ministry of Finance for the budget in the 7th month of 2024 confirm the large excess in tax revenues as well as the monstrous primary surplus. As it turns out, indirect taxation through VAT and VAT underpins the good picture for the 2024 budget, removing at the same time money from the pockets of citizens, who are affected by the continued accuracy.
According to the final data of the Ministry of National Economy and Finance for the first half of the year, the revenues of the “Taxes” category amounted to 36.866 billion euros, increased by 2.190 billion euros or 6.3% compared to the target included in introductory report of the 2024 Budget. Neither more nor less, this excess is close to the annual revenue that the state receives from the payment of ENFIA on behalf of the taxpayers!
The taxes
In particular, the following are observed for the main taxes of this category:
-VAT revenues amounted to 14,581 million euros and are higher than the target by 545 million euros.
– The revenues of the EFCs amounted to 4,046 million euros and are increased compared to the target by 135 million euros.
-The real estate tax revenues amounted to 1,809 million euros and are increased against the target by 73 million euros.
-Income tax revenues amounted to 12,285 million euros and are increased against the target by 1,404 million euros, of which the Personal Income Tax is increased by 399 million euros, the Corporate Income Tax is increased by 811 million. euros and Other Income Taxes increased by 194 million euros compared to the target.
This particular picture shows that the prevailing accuracy regime favors execution for the state budget. Of course, the ministry states that “This over-execution comes from the better performance of the income taxes of natural and legal persons of the previous year that were collected in installments until the end of February 2024 (it is noted that an estimated amount of 647 million euros is counted in the fiscal result of year 2023), as well as the best performance in the collection of taxes of the current year. Therefore, the excess of tax revenue that is counted fiscally in the year 2024 amounts to 1.543 billion euros.
It is noted that the above concerns the comparison in relation to the objectives of the Budget. During the preparation of the Stability Program in April 2024, an increase in tax revenues of 1,238 million euros has already been taken into account, which is directed to increased expenses for the year 2024 of the regular Budget of the General Government bodies, as well as the National arm of the Public Investment Program , as reflected in the Stability Program.
Tourism and the image of July
The image was also very good for tax revenues in July, which is partly due to tourism.
According to the data, the revenues of the “Taxes” category amounted to 7,668 million euros, increased by 932 million euros or 13.8% compared to the Budget target, mainly due to the better performance in the collection of income tax of natural and legal persons of the fiscal year 2023. It is noted that most of this result, as mentioned above, has been foreseen in the objectives of the Stability Program.
In particular, the following are observed for the main taxes of this category:
-VAT revenues amounted to 2,638 million euros and are increased against the target by 197 million euros.
– The revenues of the EFCs amounted to 728 million euros and are increased compared to the target by 56 million euros.
-Real estate tax revenues amounted to 206 million euros and are 4 million euros short of the target.
-Income tax revenues amounted to 3,457 million euros and are increased against the target by 666 million euros, of which 324 million euros concern the income tax of legal entities and 271 million euros the income tax of natural persons.
The huge primary surplus
The result of the above is the creation of an oversized primary surplus
According to the data, for the period January-July 2024, the primary result on an adjusted cash basis was a surplus of €5.665 billion, against a target of a primary surplus of €1.655 billion and a primary surplus of €3.558 billion for the same period. in 2023.
According to the Ministry of Finance, “part of the difference in tax revenue collections amounting to 647 million euros is counted in the fiscal result of the year 2023 and an amount of 2.323 billion euros which concerns the postponement of transfer payments to OKA by 1.693 billion euros, as well as of the costs related to the equipment programs amounting to 630 million euros, does not affect the result in fiscal terms”.
However, excluding the above amounts, the target overshoot in the primary surplus of the state budget for the period January-July amounts to €1.040 billion, which constitutes a significant overshoot
Source OT
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