3,712 mln euro primary surplus in Jan-July 2015

According to the final data available for the execution of the State Budget on a modified cash basis, the State Budget balance for the period January – July of 2015 presented a deficit of 840 million Euros against the target of deficit of 1,375 million Euros and the deficit of 1,736 million Euros for the same period of 2014. The State Budget Primary Balance amounted to a surplus of 3,712 million Euros, against primary surplus target of 2,988 million Euros and the primary surplus of 2,279 million euros performed at the same period of the previous year. State Budget net revenues amounted to 26,874 million euros, showing an underperformance of 3,942 million Euros or 12.8 % against the target. Ordinary Budget net revenues amounted to 24,839 million Euros, 4,097 million Euros or 14.2 % lower than the target. In particular, the shortfall for the period January-July 2015, against the target is due to: – Extension of submission of declarations and first installment payment of Personal Income Tax (PIT), – Extension of submission of declarations and installments payment of Corporate Income Tax (CIT), – Non assessment and no payment of first installment of ENFIA (property tax) – No receipt of 1.724 million Euros ANFA & SMP revenue. – Tax refunds amounted to 1,546 million Euros, decreased against the target (1,863 million Euros) by 318 million Euros. – PIB revenues amounted to 2,035 million Euros increased against the target by 155 million Euros. Particularly, according to final data of July 2015 the State Budget net revenues amounted to 5,046 million Euros, 3,044 million Euros or 38% lower than the monthly target. Ordinary Budget net revenues amounted to 5,039 million Euros, 2,441 million Euros or 33% lower than the monthly target. We mention that, according to final data, State Budget net revenues (mainly Tax Revenue) for July are 185 million Euros higher than the preliminary data. In July 2015 significant underperformance against the target showed: – PIT by 448 million Euros or 29%, – Property taxes by 671 million Euros – Other direct taxes by 152 million Euros or 28%, – VAT on fuels by 62 million Euros or 27%, – Other transaction taxes by 33 million Euros or 33%, – Other non tax revenues by 72 million Euros or 23%. Increased against the monthly target were the revenues from: – CIT by 381 million Euros or 120%, – VAT other by 6 million Euros or 0.5%. Tax refunds for the period of July 2015 amounted to 215 million Euros, decreased against the monthly target (412 million Euros) by 197 million Euros. State Budget expenditures amounted to 27,714 million Euros, 4,477 million Euros lower than the target (32,191 million Euros). Specifically, ordinary Budget expenditures amounted to 26,516 million Euros and were decreased by 3,104 million Euros against the target, mainly due to the reduction of primary expenditure by 2,883 million Euros, the reduction of military procurement (on a cash basis) by 358 million Euros and the reduction of Guarantees called by 81 million Euros. Ordinary Budget expenditures were reduced compared to the respective period of 2014 by 1,785 million Euros or by 6.3%, despite the fact that expenditures increased by 39 million Euros for on call duty of hospital doctors, 50 million Euros for agricultural subsidies, 41 million Euros for EU payments and 16 million Euros for allowance for tackling humanitarian crisis. Public Investment Budget (PIB) expenditure amounted to 1,198 million Euros, decreased by 1,372 million Euros comparing to the target (2,570 million Euros) and decreased by 1,767 million Euros comparing to the same period last year. For July in particular, State Budget expenditures amounted to 4,472 million Euros, 387 million Euros lower than the monthly target, while Ordinary Budget expenditures amounted to 4,428 million Euros, showing an under performance of 61 million Euros against the monthly target. The lower State Budget expenditures are mainly due to the rearrangement of the cash payments projection, according to the prevailing restrictive conditions. It is estimated that after the stabilization of the cash flow conditions, the expenditure will revert to the levels of budget targets.