At 620 million euros, or 14.1% compared to the plan, increased tax revenues for January, according to executive data. budget January 2023, continuing the successful streak of the last months of 2022 and explaining where the government has found budget space for the last social packagefor pensioners with personality differences, etc.

The “net” budgetary space from this January overfulfillment, according to a financial staff source, is 400 million euros, while the aforementioned last package costs the budget 650 million euros. But it costs 650 million euros market passwhich will be financed from the budgetary reserve intended to support electricity tariffs, since after the reduction in the price of natural gas, the corresponding requirements are reduced.

Deputy Minister of Finance Theodor Skylakakis Yesterday, he told Pavlos Tsimas on SKAI radio that nothing else, large-scale, in terms of budgetary implications, is planned, leaving open the possibility of individual intervention. So far, however, the estimated fiscal space has been almost completely converted into support measures, negating the prospect of a higher primary surplus than the 0.7% of GDP projected in the budget.

“We give within the money that we have,” a source in the finance staff said yesterday. In addition, he argued that the government does not want universal debt settlement, as it hurts the payment culture. “Even if the refund of €184 million in excess of the revenue target is removed, this remains a very significant overshoot, confirming the government’s estimates of a better-than-expected state of the economy in 2023,” Mr Skilakakis said on the occasion of the release of the report. budget execution data.

According to a statement from the Ministry of Finance, the overfulfillment of revenues is estimated to be due to higher rates of taxes for the previous year collected in installments until the end of February 2023 (tax on personal and corporate income, ENFIA), as well as higher rates for collecting taxes for the current year (VAT, VAT, etc.). Thus, according to the announcement, only a portion of the leading measures will be reflected in this year’s earnings.

January revenue rose $620 million, or 14.1%, over the target.

However, the good earnings trend is expected to continue, even if it slows down, as the following factors contribute to it:

1. A drop in the price of gas to half the budget forecast (60 euros instead of 120), which contributes to development and, therefore, tax revenues. After all, yesterday, sources in the economic headquarters calculated that the growth rate could reach 2%, against the budget forecast of 1.8%. The same sources pointed to a record business turnover of 461 billion in 2022.

2. Inflation, which “inflates” nominal income.

3. Growth of electronic transactions.

The election does not concern economic staff in terms of its impact on GDP and the budget, according to an economic staff source, although it is expected to delay the submission of a proposal to revise the Recovery Plan. In the context of the latter, the same source confirmed that Greece intends to request a loan of 50 billion euros from REPower EU (see “K” dated 02.10.2022).

The economic headquarters also considers the “truce” with Turkey to be encouraging for the economy, as it limits the need for equipment in the future, improves the economic relations of the two sides, and improves the country in terms of investment.