The state budget recorded a primary surplus of €2.99 billion in January-February 2026, exceeding targets, with performance mainly supported by expenditure containment. Tax revenues reached €11.47 billion, falling short of targets by €386 million. The revenue shortfall is primarily attributed to reduced performance of energy taxes, as excise duties recorded losses of €223 million. Meanwhile, income tax came in €90 million lower, a development linked to corporate performance and other taxpayer categories. Conversely, VAT showed an overperformance, limited to €45 million when excluding the impact of the Egnatia Highway contract.
On the expenditure side, the total amount reached €11.1 billion, approximately €1.1 billion below target. This deviation is mainly due to payment deferrals over time, as well as significant underperformance in investment expenditures, which contributed to maintaining a strong primary result at the beginning of the year. According to state budget execution data on a modified cash basis, a surplus of €898 million was recorded for January-February 2026, against a target deficit of €97 million and a surplus of €709 million in the corresponding period of 2025. The primary result showed a surplus of €2.99 billion, exceeding both the target of €1.957 billion and the 2025 result of €2.802 billion.
Excluding amounts related to payment deferrals—€126 million for defense programs, €591 million for the Public Investment Program and €200 million for other capital transfers—which do not affect the General Government fiscal result, the primary result overperformance is limited to €117 million.
Primary surplus: Tax revenues €11.5bn with €386mn shortfall
It is clarified that the primary result on a fiscal basis differs from that on a cash basis, while the data concerns exclusively the Central Administration and not the entire General Government, which includes legal entities, local authorities and social security organizations.
January 2026 revenues were particularly affected by transactions related to the 35-year Egnatia Highway concession contract. Specifically, €306 million in VAT on the price was attributed to the State and recorded in the tax category, accompanied by an equivalent refund. The same amount was re-entered as revenue from sales of goods and services.
Regarding total net revenues for the first two months of 2026, they amounted to €11.987 billion, showing a shortfall of €127 million against the target. Tax revenues reached €11.78 billion, including the amount from the Egnatia contract. Excluding this, they amounted to €11.474 billion, down €386 million or 3.3%, mainly due to lower collections from energy product taxes.
In detail, VAT revenues reached €5.487 billion, increased against the target, while excluding the contract impact the overperformance is limited to €45 million. Conversely, excise duties reached €869 million, showing significant underperformance. Real estate taxes moved marginally lower, while income tax revenues amounted to €4.394 billion, with increases for individuals but decreases for corporations and other categories.
In other categories, social contributions moved close to target, while transfer revenues lagged, mainly due to lower inflows from the Public Investment Program. Revenues from sales of goods and services appear increased when excluding the contract impact, while other current revenues also exceeded targets.
Tax refunds amounted to €1.468 billion, up €300 million, mainly due to VAT refunds related to the concession contract.
For February 2026, net revenues amounted to €5.848 billion, lower than the monthly target. Tax revenues showed slight underperformance, with VAT exceeding targets, but excise duties and income tax moving lower.
State budget expenditures
Finally, state budget expenditures for the first two months amounted to €11.088 billion, down €1.122 billion against target, but slightly increased compared to 2025. The deviation is mainly due to payment delays, particularly in defense programs and investment expenditures, which appear significantly reduced both against target and compared to the corresponding period of the previous year.
It is noted that at the beginning of each fiscal year, priority is given to covering obligations from previous years, as well as servicing multi-year commitments.
