Greek Budget Surplus Reaches €4.6 Billion in First Half of 2025

The Greek state budget recorded significant improvement in the first half of 2025, driven by robust increases in tax revenues. These encouraging results, anticipated by the economic team, provide a foundation for the tax relief package announced at the Thessaloniki International Fair.

Tax Revenue Performance in the State Budget

Official data indicates that tax revenues reached €32.29 billion, exceeding the initial target by €2.32 billion, a 7.8% increase. This positive outcome stems from two primary factors:

1. Early Collection of Personal Income Tax: A portion of personal income tax, originally expected by the end of July, was collected earlier due to the tax return application’s efficient operation starting in mid-March.
2. Improved Tax Collection Performance: Stronger collection of current-year taxes further bolstered the budget. Key contributors include:

• Higher revenues from VAT and excise duties.
• Enhanced collection of prior-year income taxes.
• Successful completion of installment arrangements through February 2025.

In June alone, tax revenues reached €5.32 billion, surpassing the target by €647 million, a 13.8% increase.

This positive revenue trend creates favorable conditions for implementing planned tax reductions. The state budget’s stability enables the economic team to move forward confidently with its policy initiatives.

oikonomia

State Budget 2025: Primary Surplus More Than Doubles

Preliminary data on a modified cash basis for January–June 2025 shows a state budget deficit of €416 million, significantly better than the projected deficit of €2.795 billion for the period and the €2.256 billion deficit recorded in the same period of 2024. The primary surplus reached €4.667 billion, compared to a target of €2.235 billion and a surplus of €2.905 billion in the first half of 2024.

Notably, €792 million in timing differences for regular budget transfer payments and €510 million for defense program payments do not impact the General Government’s fiscal result. Additionally, €342 million in tax revenues from the first two months is fiscally attributed to 2024. Excluding these amounts, the primary surplus on a modified cash basis is estimated at €788 million. The early collection of personal income tax, facilitated by the mid-March operational tax return application, also contributed to this result.

It is important to note that the primary surplus in fiscal terms differs from the cash-basis result. The figures above reflect the Central Administration’s primary result, not the entire General Government, which includes Legal Entities, Local Government, and Social Security Organizations.

Net State Budget Revenue Levels

Net state budget revenues for January–June 2025 reached €34.385 billion, a €488 million (1.4%) increase over the target in the Budget 2025 explanatory report. This amount includes €784.8 million from the new Attiki Odos Concession Agreement, recorded in January 2025 under “Sales of goods and services” and tax refunds (VAT). This transaction, fiscally neutral and related to 2024, does not affect the overall fiscal outcome.

The revenue increase occurred despite the non-collection of €1.35 billion projected for June from the Egnatia Odos highway concession agreement, signed on March 29, 2024, between the Greek State, TAIPED (now EESYP), and “NEA EGNATIA ODOS S.A.” Payment completion is expected in the coming months.

Tax revenues totaled €32.296 billion, exceeding the target by €2.323 billion (7.8%), driven by:

• Early collection of personal income tax, as noted above.
• Stronger performance in collecting current-year taxes (VAT, excise duties, etc.) and prior-year income taxes paid in installments through February 2025.

The final distribution of revenue categories will be detailed in the forthcoming bulletin.

Tax refunds reached €4.373 billion, including the €784.8 million VAT refund from the Attiki Odos agreement, which fiscally impacts 2024. Excluding this, tax refunds totaled €3.588 billion, €273 million above inout the target of €3.315 billion.

Public Investment Program revenues reached €1.923 billion, falling €577 million short of the €2.5 billion target.

In June 2025, total net state budget revenues were €5.416 billion, €1.144 billion below the monthly target due to the delayed Egnatia Odos payment. However, tax revenues reached €5.342 billion, exceeding the target by €647 million (13.8%), primarily due to early personal income tax collection. Revenue refunds totaled €553 million, €76 million below the target of €629 million, while Public Investment Program revenues were €197 million, €423 million below the €620 million target.

State Budget Expenditures

State budget expenditures for January–June 2025 totaled €34.801 billion, €1.891 billion below the €36.692 billion target and €1.079 billion higher than the same period in 2024. Regular Budget payments were €1.803 billion below target, primarily due to timing differences in:

• €792 million in transfer payments to Social Security Organizations and other General Government entities.
• €510 million in cash payments for defense programs.

These amounts do not affect the General Government’s fiscal result.

Key transfers included:

• €594 million to hospitals and Health Regional Administrations–Primary Health Care Units.
• €400 million to cover public service obligations in the electricity sector (per Article 55 of Law 4508/2017).
• €410 million to the National Central Health Procurement Authority (EKAPY) for pharmaceutical and health service procurement for public hospitals.
• €158 million in subsidies to transport organizations (OASA, OASTH, OSE).
• €115 million in subsidies to Higher Education Institutions.

Investment expenditure payments totaled €5.051 billion, €88 million below the target and €109 million less than in 2024.