Greece opened 2026 posting a primary surplus of €3.5 billion in January, well above the budget target of €1.751 billion, the Finance Ministry said.
The figure also exceeded the €1.98 billion primary surplus recorded in the same month last year, signaling a robust start to the new fiscal year.
However, officials cautioned that the headline result reflects timing shifts in certain payments and revenues, underscoring the distinction between cash-based and fiscal accounting measures.
Excluding €1.272 billion in delayed transfer payments to general government entities and €379 million in postponed investment spending — both of which do not affect the general government’s fiscal result — the surplus overperformance on a modified cash basis is estimated at €109 million.
The ministry stressed that the reported primary result refers to the central government, not the broader general government, which also includes legal entities and social security funds.
Primary balances exclude interest payments and are closely watched by investors and European institutions as a measure of fiscal discipline.
Revenue Near Target
Net state budget revenues reached €6.138 billion in January, €35 million, or 0.6%, above target.
Tax revenues totaled €6.118 billion. That figure includes €306 million linked to the 35-year concession agreement for the Egnatia motorway, a major highway project in northern Greece.
The amount reflects value-added tax (VAT) paid by the concessionaire to the state and subsequently recorded both under tax revenues and under sales of goods and services, accompanied by an equivalent VAT refund.
Excluding the €306 million concession-related VAT, tax revenues would have reached €5.812 billion, falling €324 million, or 5.3%, short of target, mainly due to weaker-than-expected VAT and excise duty collections on energy products.
Key Tax Categories
- VAT revenues stood at €3.136 billion, exceeding the target by €257 million. Without the concession-related amount, VAT revenue would have been €49 million below target.
- Excise duties came in at €393 million, €154 million under target.
- Property taxes totaled €90 million, €8 million below target.
- Income taxes reached €2 billion, €43 million under target overall. Personal income tax outperformed by €14 million, while corporate income tax and other income taxes fell short of projections.
Other revenue categories showed mixed results. Transfers totaled €56 million, €116 million below target. Revenues from sales of goods and services reached €479 million, boosted by the motorway concession; excluding that effect, they were €77 million above target.
Revenue refunds amounted to €795 million, including the €306 million VAT refund linked to the concession agreement. Without it, tax refunds were slightly below target.
Public Investment Program revenues came in at €139 million, €9 million above projections.
Spending Falls Short of Target
State budget expenditures totaled €3.851 billion in January, €1.709 billion below the budget target and €1.382 billion lower than in January 2025.
The shortfall largely reflects delayed transfer payments to social security funds and other general government entities.
Under the regular budget, payments were €1.33 billion below target, mainly due to the €1.272 billion shift in transfer payments. Investment spending reached €427 million, €379 million below target and €309 million lower than a year earlier.
The ministry noted that at the start of each fiscal year, government entities prioritize clearing unpaid obligations from previous years and fulfilling multi-year commitments.
Source: ot.gr
