The state budget had a surplus of two million euros in January, thanks to the fact that planned expenditures in the amount of 57,5 million euros were not realized. If all planned expenditures had been paid in January, the monthly budget deficit would have amounted to 60,5 million euros, according to data from a table posted on the Ministry of Finance website yesterday.
In January, the Government repaid a loan installment of 34,6 million from previous debts, so the total missing funds in the treasury amounted to 32,6 million euros, which was covered by a decrease in deposits.
It is interesting that all 16 types of state revenues were collected at the exact percentage compared to the plan.
Yesterday, before the tables were posted, the Ministry of Finance issued a statement stating that they had achieved a surplus of two million instead of a deficit of 60,5 million euros, but they did not say that this happened because 37 percent of planned expenditures had not been paid.
Total budget revenues amounted to 156,2 million euros, exactly as planned. This is 5,2 million euros more than the collection in the same month last year.
Small growth in VAT and excise duties despite increases
VAT collection amounted to 96,6 million euros, or five million euros more than last year, despite the fact that VAT rates on hotel services were increased from seven to 15 percent, and seven percent rates were introduced on books, publications, tickets,... as well as on the full value of postal items and online purchases. Also, the annual inflation rate in January was 2,8 percent, which also affected the increase in VAT collection on goods and services whose prices were increased. Despite all this, VAT collection increased by only 5,5 percent compared to the same month last year.
Excise taxes collected amounted to 23,7 million euros, which is 1,1 million more than in January last year, despite the increase in excise taxes on cigarettes, the introduction of excise taxes on wines, and the increase in the amount and scope of excise taxes on sweets, juices, and carbonated drinks. The new and higher excise taxes were also expected to affect the higher collection of VAT, as it is included in the basis for its calculation.
Three million or one million more than last year were collected from personal income tax, 4,8 million or 2,8 million more from corporate profit tax, 3,5 million or half a million more from international trade and transaction tax, and 1,1 million or 200 thousand more from other types of taxes.
The state treasury received 14,3 million euros in pension and disability insurance contributions in January, which is 3,1 million euros more than in the same month last year. The ministry stated in a statement that this increase was achieved even though they halved the amount of PIO contributions on employees' gross salaries since November. However, January cannot be relevant because the collection of this contribution refers to the paid December salary, and a significant part of employers paid the salary for that month, including taxes and contributions, before the New Year. This is confirmed by the data of this ministry that they collected 54,4 million euros in PIO contributions in December last year, or four times more than in January.
Of all other contributions, 2,3 million euros were collected, which is one million more than last year.
The state treasury earned 900 thousand euros from taxes in January, the same as last year. 4,3 million euros were collected from fees, 1,8 million more. The largest increase in fees was achieved in games of chance, from 1,6 to three million euros.
Other income amounted to 1,7 million euros, while in January last year that income was 7,8 million euros.
How we "saved" 60 million
Total budget expenditures in January were planned at 211,5 million euros, but were paid in the total amount of 154,2 million euros. The ministry had a similar practice last year when in the first part of the year it boasted of surpluses, achieved by not realizing planned expenditures, but in the last two months most of them were paid, so the overall result was a deficit of 230 million.
Thus, in January, current expenditures were planned at 80,4 million euros, while they were realized in the amount of 61,8 million euros. The largest "savings" were in subsidies, because instead of 5,7 million, only 700 thousand were paid, out of 2,8 million for current maintenance costs, nothing was paid, out of 4,1 million for services, one million was paid, out of 1,8 million euros worth of material expenditures, nothing was paid,...
There were also "savings" on social security transfers, as 86,4 million less of the estimated 4,2 million in expenditures were paid.
20 million were "saved" on expenditure related to transfers to institutions, individuals, non-governmental and public sectors, which are used to settle obligations towards state public institutions and institutions from the budget, because instead of the planned amount of 24,9 million euros, 4,9 million were paid.
Capital expenditures were planned at 5,5 million euros in January, but only 100 thousand were paid. Payments from the budget reserve were planned at 8,1 million euros, but all of that amount was “saved”.
In January, debts of 34,6 million euros were repaid, of which 32,6 million were for repayment of securities and loans to foreign residents and two million to domestic residents. These repayments were made in the same amounts as foreseen in the plan.
With debt repayments, the state budget was short by a total of 32,6 million euros this month, which were provided by withdrawing deposits from last year in the amount of 32,4 million, while 100 thousand were generated from the sale of property and one hundred thousand from loan repayments and funds transferred from the previous year.
Ministry: We have shown rationality and competence
The ministry stated in a statement that the first month of 2025 is characterized by dynamic economic growth and acceleration of economic activity.
They explain that the increase in income tax revenue was also due to the increase in the minimum wage from November to 600 euros for employees up to level V of qualification, and to 800 euros for level VI and higher education.
"Therefore, the average net salary in December 2024 amounted to 1012 euros, which predominantly led to a strengthening of the personal income tax base," the Ministry stated.
They say that the increase in VAT collection is, "among other things, the result of increased consumption due to increased disposable income."
"Despite the significant net VAT collection, the VAT refund in the said month was higher compared to the same month in 2024 by as much as 11,8 million and amounted to 13,9 million euros," the Ministry stated.
The statement did not state that the increase in VAT collection was also due to the increase in its rates on some products and services, which are valid from January 1st.
"There is also an increase in excise revenue, which was achieved, among other things, thanks to the expansion of the tax scope of products in the area of non-carbonated beverages with added sugar, i.e. the introduction of excise duty on 'still' wines, as well as 'fuel marking'," was stated as the explanation for the increase in excise revenue collection by 1,1 million euros or 4,9 percent compared to the same month in 2024.
"Despite the difficulties that marked the first month, caused by temporary financing and the untimely adoption of the budget by the Parliament, the Ministry of Finance timely fulfilled all regular obligations, preserved the stability of public finances and maintained the economic growth trend. In this way, we have once again confirmed the high level of professionalism and responsible attitude towards the state budget, as well as rationality and competence in managing public funds," the Ministry said in a statement, without specifying the amounts of planned and paid expenditures.
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