Μake us preferred on Google The Greek state budget ran a deficit of 389 million euros in the first seven months of 2026, well inside the 1.323 billion euro shortfall the government had penciled in for the period, according to preliminary Finance Ministry data on execution of the state budget. The result marks a sharp reversal from the same period last year, when the budget posted a surplus of 2.168 billion euros.
Tax collection beats target
Net revenue for the January through July period reached 45.207 billion euros, a stated 1.975 billion euros above target. Part of that gain reflects timing rather than genuine outperformance. The government’s original target had assumed Greece would collect 1.258 billion euros from the European Union’s Recovery and Resilience Fund in June, but 884 million euros of that amount had already arrived earlier, in April, while the remaining 374 million euros is still expected later this year. Stripping out the Recovery Fund disbursement, net revenue ran 2.349 billion euros ahead of target.
Tax revenue, the core driver of the state’s income, totaled 42.916 billion euros for the seven months. That figure includes two one time items unrelated to ordinary tax collection: 306 million euros tied to a motorway concession deal and 135 million euros from the second installment of a casino license fee. Once those are excluded, underlying tax revenue came to 42.475 billion euros, still 1.112 billion euros, or 2.7 percent, above target.
Revenue refunds rose to 4.971 billion euros, 494 million euros higher than planned, largely because of a 306 million euro VAT refund connected to the same highway deal. Public Investment Program revenue reached 3.167 billion euros, 457 million euros above target.
The Egnatia Odos deal behind the numbers
The one time boost traces back to a 35 year concession agreement covering the financing, operation and maintenance of the Egnatia Odos, a motorway that runs across northern Greece, along with its three connecting routes. Under the deal, the concession operator paid 306 million euros in 24 percent VAT on the transaction to the Greek state in January. That amount was recorded under “taxes” and immediately matched by an equal refund, before the same 306 million euros was booked again, this time under “sales of goods and services.” The bookkeeping means the figure shows up twice in the government’s accounts without adding to the state’s net take.
Primary surplus well below last year’s pace
On a modified cash basis, the primary surplus, a measure that excludes interest payments on debt, stood at 5.725 billion euros for the seven months, above the government’s 4.417 billion euro target but far short of the 7.939 billion euros recorded over the same stretch in 2025.
The Finance Ministry data flags that a chunk of the apparent overperformance reflects one time factors rather than durable gains. Excluding 510 million euros linked to delayed Public Investment Program payments, 406 million euros in postponed transfers to general government bodies, and the 135 million euro casino license installment, the primary result beat budget targets by just 256 million euros, a far more modest margin. The ministry also notes that the primary result on a fiscal basis differs from the cash based figures reported here, and that the numbers cover only the Central Administration rather than the wider General Government, which also includes public legal entities, municipalities and social security organizations.
July alone posted a strong month
In July, net revenue came to 9.195 billion euros, 895 million euros above the monthly target. Tax revenue for the month reached 9.092 billion euros, 528 million euros, or 6.2 percent, above target. Refunds totaled 842 million euros, 143 million euros higher than planned, while Public Investment Program revenue for the month alone hit 410 million euros against a target of just 55 million euros.
Spending climbs on health, welfare and investment
State budget expenditure for the seven months reached 45.596 billion euros, 1.041 billion euros above target and 4.911 billion euros higher than the same period in 2025.
Regular budget payments ran 185 million euros above target. The largest transfers included a 1.243 billion euro grant to the National Organization for the Provision of Health Services (EOPYY), a 1.818 billion euro grant to the Organization for Welfare Benefits and Social Solidarity (OPEKA), and 915 million euros to the National Central Health Procurement Authority (EKAPY) for pharmaceuticals and other health supplies for public hospitals. Hospitals and primary health care facilities received an additional 801 million euros in transfers.
Other notable payments included 244 million euros in grants to public transport operators in Athens and Thessaloniki and to the state railway, 131 million euros to fund the Fuel Pass subsidy program, 110 million euros toward a diesel fuel subsidy, and 220 million euros in emergency financial support for families with children.
Investment spending rose the fastest, with payments reaching 7.602 billion euros, 855 million euros above target and 1.471 billion euros higher than in 2025. The Finance Ministry attributed the jump to accelerated disbursements for projects funded under the Recovery and Resilience Fund.
The Finance Ministry said the precise breakdown between revenue categories will be finalized when the official bulletin is published.
Source: OT.gr
