State arrears to suppliers, pensioners and taxpayers remain persistently high, with government overdue debts and public sector pending tax refunds reaching €3.54 billion in July.
Hospitals, social security funds and municipalities continue to accumulate debts, while the Independent Authority for Public Revenue is still searching for thousands of taxpayers to return €218 million they are entitled to. Hospitals continue to hold the lion’s share despite recommendations from the National Central Health Procurement Authority to expedite payments, as well as the country’s condemnation by the European Court of Justice.
In detail, according to official data from the General Accounting Office of the State for July:
1. Hospitals: Public hospitals owe €1.498 billion to suppliers, an amount reduced by €101 million compared to June, but increased by €334 million since the beginning of the year.
2. Social Security Organizations: Social security fund debts reached €623 million, up €11 million within a month and €38 million compared to the end of 2024. The outstanding amounts mainly concern delays in issuing primary and supplementary pensions, while it should be noted that in 2017 corresponding debts had hit a “red alert” level reaching €1.531 billion.
3. Municipalities – Local Authorities: Local Government Organization debts (municipalities, regions) moved downward, reaching €247 million.
4. Legal Entities: Public sector legal entity debts remained at their high level of €222 million.
5. Tax refunds: Pending tax refunds increased by €10 million within a month, reaching €732 million in July from €722 million in June. Of these:
– €329 million concern refunds delayed over 90 days,
– €403 million are pending for less than 90 days,
– €218 million remain unallocated as the tax authority is still searching for taxpayers entitled to these amounts. These refunds remain in the drawers of the tax administration due to non-response from beneficiaries or failure to submit required documentation.
Of the €732 million pending tax refunds, €221 million are direct taxes, €389 million are indirect taxes and €115 million come from non-tax revenues.
