Budget: Primary deficit of 9 billion euros in 10 months



The state budget recorded a primary deficit of 9.05 billion euros in January-October, compared to an initial target of a surplus of 3.26 billion euros. Reduced economic activity due to the coronavirus health crisis and measures to address it led to a significant lagging state revenues. According to the data, net revenues amounted to 38.4 billion euros in the 10 months to October, down 11.1% from the target. However, in October the picture was better than estimated, according to the Ministry of Finance. More specifically, the total state budget revenues amounted to 42.984 billion euros, reduced by 4,009 million euros or 8.5% against the target. Tax revenues was € 35.564 billion, down € 6.052 billion or 14.5% from the target set out in the 2020 budget report. However, compared to the updated estimates for January-October 2020 included in the Draft Budget (Draft Budgetary Plan – DBP) 2021, submitted to the European Commission on 15 October 2020 and containing the effects of the measures to deal with the health crisis, tax revenue is reduced by around € 43 million. from the target, in addition to the impact of the health crisis, is mainly due to: a) The reduction of the income tax advance of legal entities affected COVID-19, b) The payment of personal income tax in 8 monthly installments instead of the 3 bi-monthly installments provided in the 2020 Budget Report, c) The payment of corporate income tax in 8 monthly installments instead of 6 monthly installments of the target. The exact distribution between the categories of state budget revenues will be made with the issuance of the final bulletin. Revenue returns amounted to 4.581 billion euros, increased by 778 million euros from the target (3.802 million euros). Public Investment Budget (PDB) revenues amounted to 4.436 billion euros, up 1.681 billion euros from the target. October picture For October 2020, total net state budget revenues fell to 4.899 billion euros, down 72 million compared to the monthly target. Total state budget revenues fell to 5.393 billion euros, down from the monthly target by 5 Tax revenue was € 4.569 billion, down € 561 million from the monthly target set out in the 2020 Budget Report. However, according to the updated monthly estimates from the figures in DBP, tax revenues are reduced for the month of October 2020 by 137 million euros. This lag from the target is estimated to be mainly due to the reduced VAT revenues, from July – September 2020, for those required to submit quarterly declarations, as well as the reduction of the advance payment of income tax of legal entities affected by the pandemic. On the contrary, in relation to the target, the revenues from ENFIA are estimated due to the extension given for the payment of the first and the second installment until the end of October. The revenue returns of October 2020 amounted to 494 million euros, marking an increase of 67 million euros against the monthly target (427 million euros). Revenue of the EDP amounted to 606 million euros, increased by 524 million euros against the monthly target. Expenditures The state budget expenditures for the period January – October 2020 amounted to € 51,845 million and increased by € 7,668 million against the target (€ 44,177 million). The main reasons for the discrepancy are: a) the cost of special purpose compensation due to the COVID-19 pandemic (employees and scientists) of about € 1,450 million, paid by the Ministry of Labor and Social Affairs (transfer category), b the cost of business support in the form of a repayable advance of approximately € 2,064 million paid by the Ministry of Finance (transfer category), (c) the cost of an extraordinary grant to EFKA and EOPYY to cover contributions due to the pandemic, amounting to 489 and 263 million euros respectively, d) the cost of a grant to EFKA for the retroactive amounts of pensioners amounting to 1,400 million euros, expenditure for special purpose compensation of enterprises and the self-employed amounting to EUR 494 million, for the subsidization of interest on loans to small and medium-sized enterprises amounting to EUR 186 million for the measure of business support in the form of a repayable advance of EUR 997 million, for the TEPIX II action of EUR 768 million and for the establishment of a business guarantee fund due to the COVID-19 pandemic of EUR 1,000 million. euros and f) the increased interest payments by 181 million euros. Skylakakis: They endured the October revenues “Tax revenues in October had a decrease of 12.3%, therefore they moved better than in September, taking into account the conditions. “Revenues from taxes amounted to 4,569 million euros, reduced by 561 million euros compared to the monthly target included in the presentation report of the 2020 Budget,” said Deputy Finance Minister Theodoros Skylakakis. “Given the emergency health measures, however, we expect a significant deterioration in revenue in the coming period, which will be reflected in the revenue data in 2020 that will be recorded in the submitted budget.” The first data for the November revenue are considered satisfactory, however they are not indicative. Follow it on Google News and be the first to know all the news See all the latest News from Greece and the World, at



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