Budget Surplus of €902M in Jan–Feb 2026 – Lower Spending Offsets Revenue Shortfall

Greece’s state budget recorded a surplus of €902 million in the period January–February 2026, against a targeted deficit of €97 million, according to provisional data from the Ministry of Finance.

This performance is mainly due to significantly lower spending than planned, while tax revenues—excluding extraordinary items—fell short of expectations.

Controlled Expenditures Boost Surpluses

Key figures from the provisional report:

• Total expenditures amounted to €11,088 million, €1,122 million lower than the target.
• The primary balance on a modified cash basis reached €2,994 million, versus a target of €1,957 million.
• Excluding timing adjustments for defense programs (€126 million), Public Investment Program (PIP) payments (€591 million), and other capital transfers (€200 million), the primary balance exceeded the target by €120 million.

“The timing of payments and prioritization of obligations largely explains the budget’s overperformance,” analysts noted.

Revenue Shortfalls Offset by Extraordinary Items

Net revenues in the two-month period were €11,990 million, down €124 million from the target.

Tax revenues, excluding an extraordinary €306 million from the Egnatia Motorway Concession, were €11,550 million, €310 million (2.6%) below target, mainly due to lower excise duties and VAT on energy products.

Refunds of taxes rose to €1,468 million, €300 million above the target, reflecting VAT returned from the Egnatia Concession.

The Public Investment Program (PIP) showed a shortfall of €120 million, with absorbed funds totaling €715 million, limiting investment spending compared to the target.

February Breakdown

• Net revenues: €5,851 million (-€159 million vs. target)
• Tax revenues: €5,738 million (+€14 million)
• Tax refunds: €672 million (-€4 million)
• PIP funds: €576 million (-€129 million)

Spending remained €1,122 million below target for the two months, mainly due to timing of defense and capital transfers, while investment payments were €906 million lower than planned.

Geoeconomic Perspective

The surplus, despite weaker revenues, provides Greece with fiscal flexibility in an environment of geopolitical and energy pressures.

Timing adjustments and the use of extraordinary receipts highlight the importance of strategic cash management to balance revenues and expenditures.

Essentially, the results show that fiscal policy can provide support even when tax receipts lag targets, without undermining financial stability.

Source: pagenews.gr