Greece’s state budget records €6.1billion primary deficit in H1 2020

July 27, 2020

The Greek state budget recorded a primary deficit of 6.101 billion euros in the first half of 2020, from a budget target for a primary surplus of 313 million euros and after a primary surplus of 381 million in the corresponding period in 2019, the finance ministry said on Monday. €

The ministry attributed  this development to reduced revenue due to a lockdown and to higher spending to deal with the impact of the pandemic crisis.

More specifically, the report on budget execution, on a amended cash basis, in the period from January to June 2020 showed a deficit of 9.232 billion euros, from a budget target for a shortfall of 2.626 billion and a deficit of 2.687 billion in the same period last year. The primary result showed a deficit of 6.101 billion euros.
Net revenue totaled 18.996 billion euros, down 17 pct from budget targets, while regular budget revenue was 21.257 billion euros, down 14.1 pct from targets.

Tax revenue totaled 18.262 billion euros, down 13.33 pct from targets. Tax revenue fell short of targets in the categories of VAT on oil products (-26.1 pct), VAT on tobacco products (-5.0 pct), VAT on other goods and services (-15.3 pct), special consumption tax on energy products (-10.6 pct), special consumption tax on tobacco (-49.9 pct), stamp revenue (-21.3 pct), taxes on financial and capital transactions (-24.6 pct), taxes in vehicle registration (-33.2 pct), other taxes on goods (-34 pct), tax and duties on imports (-18.1 pct), property taxes (-14.6 pct), income taxes (-8.7 pct), capital taxes (-42.8 pct), transfer taxes (-10.9 pct), taxes on goods and services (40.3 pct) and taxes on property sales (99.4 pct).

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Tax returns totaled 2.262 billion euros in the six-month period, up 408 million from targets, while Public Investment Revenue income was 1.647 billion euros, down 350 million from targets.
State budget spending amounted to 28.227 billion euros in the first half, up 2.703 billion from budget targets and up 2.505 billion euros compared with the same period last year.

In June, budget revenue was 2.967 billion euros, down 1.191 billion from monthly targets, while regular budget revenue was 3.454 billion euros, down 992 million from monthly targets. Tax returns totaled 487 million euros, up 199 million from targets, while Public Investment Programme revenue was 353 million euros, down 467 million from targets.

State budget spending was 4.704 billion euros, up 432 million from targets.