The state budget shows significant strengthening with new increases in tax revenues in the first half of 2025. The encouraging data that the economic team was expecting provides a first glimpse of the revenues that will support the tax relief package announced at the Thessaloniki International Fair.
Tax revenue data in the state budget
According to official data, tax revenues reached €32.29 billion, showing an increase of €2.32 billion or 7.8% compared to the initial target. This positive development in the state budget is mainly due to two key factors.
First, the earlier collection of part of the personal income tax contributed significantly to revenue enhancement. This amount was expected to be collected by the end of July, but the timely operation of the tax return application from mid-March accelerated the process.
Improved tax performance in the state budget
Second, better performance in collecting current year taxes further strengthened the state budget. Specifically:
- Increased revenues from VAT and excise duties
- Improved collection of previous year’s income taxes
- Successful completion of installment arrangements through the end of February 2025
In June alone, state budget tax revenues reached €5.32 billion, recording an increase of €647 million or 13.8% compared to the target.
The positive trend in tax revenues creates favorable conditions for implementing the planned tax reductions. The state budget shows stability that allows the economic team to proceed with confidence in their next policy moves.
State budget 2025: Primary surplus more than doubles
According to preliminary state budget execution data on a modified cash basis for the January-June 2025 period, the state budget balance shows a deficit of €416 million compared to the target deficit of €2.795 billion included for the corresponding period of 2025 in the Budget 2025 explanatory report and a deficit of €2.256 billion for the corresponding period of 2024. The primary result on a modified cash basis showed a surplus of €4.667 billion, compared to a primary surplus target of €2.235 billion and a primary surplus of €2.905 billion for the same period in 2024. It should be noted that an amount of €792 million related to timing differences in regular budget transfer payments and €510 million related to timing differences in defense program payments 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 primary result surplus on a modified cash basis, compared to budget targets, is estimated at €788 million. It should be noted that this half-year 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 application being operational from mid-March.
It is emphasized that the primary result in fiscal terms differs from the result in cash terms. Additionally, the above refers to the Central Administration’s primary result and not to the entire General Government, which includes the fiscal results of Legal Entities and the Local Government and Social Security Organizations sub-sectors.
Net state budget revenue levels
During January-June 2025, net state budget revenues reached €34.385 billion, showing an increase of €488 million or 1.4% 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 to complete the new Attiki Odos Concession Agreement, which relates to 2024 and is fiscally neutral.
This increase is observed despite the fact that the explanatory report’s target included collection in June of €1.350 billion from the Concession Agreement for financing, operation, maintenance and exploitation of the Egnatia Odos highway and three vertical road axes, signed on March 29, 2024, between the Greek State and TAIPED (now EESYP) and “NEA EGNATIA ODOS S.A.” as Concessionaire. The next steps in the process until payment completion are expected to be finalized in the coming months.
Tax revenues reached €32.296 billion, increased by €2.323 billion or 7.8% compared to the target mainly due to: a) earlier collection of part of the personal income tax that was expected to be collected by the end of July, due to the tax return application being operational from mid-March as mentioned above, and b) better performance in collecting current year taxes (VAT, excise duties, etc.) and better performance of previous year’s income taxes collected in installments until the end of February 2025.
The exact distribution among state budget revenue categories will be carried out with the issuance of the final bulletin.
Revenue refunds reached €4.373 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 €3.588 billion and are increased by €273 million compared to the target (€3.315 billion) included in the Budget 2025 explanatory report.
Public Investment Program revenues reached €1.923 billion, decreased by €577 million from the target (€2.500 billion) included in the Budget 2025 explanatory report.
Specifically, in June 2025, total net state budget revenues reached €5.416 billion, decreased by €1.144 billion compared to the monthly target, due to non-collection during June of the concession agreement payment for the Egnatia Odos highway and its three vertical road axes, amounting to €1.350 billion, as had been projected.
Tax revenues reached €5.342 billion, increased by €647 million or 13.8% compared to the target. This increase is estimated to come mainly from personal income tax, due to the tax return application being operational from mid-March.
Revenue refunds reached €553 million, decreased by €76 million from the target (€629 million).
June Public Investment Program revenues reached €197 million, decreased by €423 million from the target (€620 million).
State Budget expenditures for January-June 2025 reached €34.801 billion and are reduced by €1.891 billion compared to the target (€36.692 billion) included in the Budget 2025 explanatory report. They are also increased compared to the corresponding period of 2024 by €1.079 billion.
In the Regular Budget section, payments are reduced compared to the target by €1.803 billion, mainly due to timing differences in transfer payments to Social Security Organizations and other general government entities by €792 million and cash payments for defense programs by €510 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 Health Regional Administrations-Primary Health Care Units amounting to €594 million,
- transfer of €400 million to cover the cost of providing public service obligations in the electricity sector (PSO), according to Article 55 of Law 4508/2017 (A’ 200),
- subsidy of €290 million to the National Central Health Procurement Authority (EKAPY) for procurement of pharmaceutical preparations, products and health services for public hospitals,
- subsidies to transport organizations (OASA, OASTH and OSE) amounting to €158 million and
- subsidy to Higher Education Institutions amounting to €115 million.
Investment expenditure payments reached €5.051 billion, decreased by €88 million compared to the target included in the Budget 2025 explanatory report. At the same time, they are reduced compared to corresponding 2024 payments by €109 million.
