Both net and tax revenues of the state budget recorded another increase in the first five months of 2025, boosting the primary surplus which, on a modified cash basis, reached €5.351 billion according to preliminary execution data – compared to a target for primary surplus of €1.055 billion and a primary surplus of €3.197 billion for the same period in 2024.
Read: Budget: €5.165 billion surplus in four-month period – 7% increase in tax revenue against target
Specifically, according to preliminary state budget execution data on a modified cash basis for the January-May 2025 period, the state budget balance shows a surplus of €1.883 billion compared to the target deficit of €2.475 billion included for the corresponding period of 2025 in the Budget 2025 explanatory report and a deficit of €535 million for the corresponding period in 2024. The primary result on a modified cash basis reached a surplus of €5.351 billion, compared to a target for primary surplus of €1.055 billion and a primary surplus of €3.197 billion for the same period in 2024. It should be noted that €1.993 billion relating to timing differences in regular budget payments and €499 million relating to timing differences in investment expenditures do not affect the General Government result in fiscal terms. Additionally, €342 million in tax revenues from the first two months is counted fiscally in 2024. Excluding the above amounts, the overperformance in the primary result on a modified cash basis, compared to budget targets, is estimated at €1.462 billion. This amount includes collection of part of the personal income tax that was expected to be collected in the following months, due to the tax return filing application being operational from mid-March.
It is noted that the primary result in fiscal terms differs from the result in cash terms. Additionally, the above concerns the primary result of the Central Administration and not the entire General Government, which includes the fiscal results of Legal Entities and the sub-sectors of Local Government Organizations and Social Security Organizations.
During the January-May 2025 period, net state budget revenues reached €28.977 billion, showing an increase of €1.640 billion or 6% compared to the target included for the corresponding period in the Budget 2025 explanatory report. It should be noted that this amount includes, both in revenues (in the “Sales of goods and services” category) and in tax refunds (VAT), the amount of €784.8 million from transactions required in January 2025 for completing the new Attiki Odos Concession Agreement, which relate to 2024 and are fiscally neutral.
Tax revenues reached €27.050 billion, increased by €1.773 billion or 7% compared to the target mainly due to: a) better performance in collecting current year taxes (VAT, excise duties, etc.) and better performance of previous year income taxes collected in installments until the end of February 2025 and b) earlier collection of part of the personal income tax that was expected to be collected in the following months, due to the tax return filing application being operational from mid-March.
Revenue refunds reached €3.819 billion and incorporate the VAT refund amount of €784.8 million from the new Attiki Odos Concession Agreement, as mentioned above, which fiscally affects 2024. Excluding this amount, tax refunds reached €3.035 billion and are increased by €349 million compared to the target (€2.686 billion) included in the Budget 2025 explanatory report.
Total Public Investment Program revenues reached €1.725 billion, decreased by €154 million from the target (€1.880 billion) included in the Budget 2025 explanatory report.
Specifically, in May 2025 total net state budget revenues reached €5.918 billion, increased by €1.411 billion compared to the monthly target, mainly due to collection in May of the fifth installment from the Recovery and Resilience Fund, amounting to €1.346 billion, which was expected to be collected in April.
Tax revenues reached €5.041 billion, increased by €412 million or 8.9% compared to the target.
Revenue refunds reached €778 million, increased by €301 million from the target (€478 million).
Public Investment Program revenues for May reached €104 million, decreased by €11 million from the target (€115 million).
State Budget expenditures for the January-May 2025 period reached €27.094 billion and are reduced by €2.718 billion compared to the target (€29.812 billion) included in the Budget 2025 explanatory report. They are also reduced compared to the corresponding 2024 period by €325 million.
In the Regular Budget section, payments are reduced compared to the target by €2.218 billion, mainly due to timing differences in transfer payments to Social Security Organizations and other general government entities by €1.539 billion and cash payments for defense programs by €455 million. It should be noted that the aforementioned amounts do not affect the General Government result in fiscal terms.
Notable transfers include the following:
- transfers to hospitals and Regional Health Authorities-Primary Healthcare Units of €588 million,
- transfer of €400 million to cover the cost of providing public service obligations in the electricity sector, according to Article 55 of Law 4508/2017,
- subsidy of €290 million to the National Central Health Procurement Authority for procurement of pharmaceutical preparations, products and health services on behalf of public hospitals,
- subsidies to transport organizations (OASA, OASTH and OSE) of €124 million and
- subsidy to Higher Education Institutions of €113 million.
Payments for investment expenditures reached €3.729 billion, reduced by €499 million compared to the target included in the Budget 2025 explanatory report. They are also reduced compared to corresponding 2024 payments by €685 million.
