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Saturday, January 23, 2016

State Budget Execution 2013-2015

Below is the development of Greece's State Budget (not to be confused with the General Government Budget!) for the period 2013-15 (in BEUR). The respective analytical comments by the Ministry of Finance can be found here. And this article in the Ekathimerini also makes analytical comments.

What stands out, in my opinion, is the year 2015. Throughout the year, particularly during the first 6 months, one could read that the Greek state was collapsing; that taxes were no longer being paid; that the small primary surplus of 2014 would turn into a huge deficit in 2015. And yet --- 2015 looks rather normal, if not quite good.

Another thing which stands out is that tax revenues before tax refunds are actually declining. This is quite surprising against the background of the seemingly countless tax increases which were made since 2010. One the other hand, one needs to bear in mind that, month after month, over 1 BEUR of taxes due are not paid. If those taxes were paid, the state would have huge surpluses.


State Budget Excecution
2013 2014 2015
I. State budget net revenue (1+2) 53.019 51.366 51.421
1. Ordinary budget net revenue (A+B+C) 48.423 46.650 46.589
A. Revenue before tax refunds 51.442 49.636 49.257
B. Privatization proceeds 86 384 254
C. Tax refunds -3.105 -3.370 -2.922
2. Public investment budget net revenues (A+B) 4.596 4.716 4.832
A. EU funds 4.520 4.649 3.900
B. Own resources 76 67 932
II. State budget expenditure (1+2) 58.459 55.063 54.950
1. Ordinary budget expenditure (A+B+C+D+E) 51.809 48.471 48.544
A. Primary expenditure 44.230 41.928 41.298
B. Military procurements (cash basis) 529 345 565
C. Guarantees called 879 587 703
D. Net interest payments 6.044 5.569 5.800
E. Loan disbursement fees (EFSF) 127 42 178
2. Public investment budget expenditure 6.650 6.592 6.406
A. Own resources 783 710 681
B. Co-financed 5.867 5.882 5.725
III.a. State budget primary balance (excl. interest) 604 1.872 2.271
III.b. State budget balance overall (incl. interest) -5.440 -3.697 -3.529

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