Budget hole keeps widening

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Budget revenues posted a major slump in the first nine months of the year, with value-added tax takings being the worst hit. At the same time revenues from real estate taxation are also in decline due to the option given to taxpayers by the government to delay the payment of the first tranche of the Single Property Tax (ENFIA) until end-October.

In total, revenues came in 5.49 billion euros below target, and €3.1 billion of that originates from consumption taxes, according to figures released on Monday by the Finance Ministry.

The September data offer a good snapshot of the entire year’s situation; last month tax revenues came to €3.898 billion, €1.948 billion off the monthly target included in the budget. There was not a single revenue category that showed an increase in revenues in September.

All this has sent the primary budget deficit soaring to €7 billion, while the hole in the budget amounts to €9.5 billion, as it also includes the originally projected primary surplus of €2.5 billion.

In the first nine months of the year tax revenues amounted to €30.988 billion – 15.1% below the budget target. The payment of a double ENFIA tranche by this Friday is expected to reduce that shortfall to an extent.

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