Greece Posts €3.3 Billion Budget Surplus in Eight Months, Exceeding Targets

Greece’s state budget continues to outperform expectations, signaling a surplus of €1.964 billion in the January–August 2025 period, surpassing the projected shortage of €1.38 cardinal acceptable successful the 2025 Budget. The primary surplus reached €8.5 billion, exceeding the target of €4.93 billion by €3.57 cardinal and marking a notable betterment implicit €7.57 cardinal successful the aforesaid play past year.

The robust fiscal show is driven by a operation of economic growth, higher VAT revenues, improved taxation collection, and inflationary effects. For August 2025, VAT revenues totaled €2.48 billion, exceeding the people by €150 million, while income taxes fell abbreviated by €181 million and excise duties (EFKs) were somewhat down by €5 million.

Government Spending and Fiscal Policy

The Greek authorities has already committed €1.7 cardinal successful benefits announced by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair (TIF), including tax cuts for young people, families, and the mediate class, alongside increases successful wages and pensions.

Chronicling fiscal discipline:

• Net authorities revenues reached €48.46 billion, up 0.4% or €184 cardinal versus target.
• Tax revenues before refunds totaled €46.52 billion, 4.6% supra projections, bolstered by beardown collections in income tax, VAT, and excise duties.
• Income taxation revenues stood astatine €17.31 billion, exceeding the people by €1.135 billion, driven chiefly by higher idiosyncratic income taxation receipts.

Key Tax Category Performance

• VAT: €18.185 billion, +€507 cardinal supra target
• Excise Duties (EFKs): €4.857 billion, +€83 cardinal supra target
• Property Taxes: €1.983 billion, +€73 cardinal supra target
• Income Taxes: €17.306 billion, with personal income taxation +€828 million, firm income tax -€38 million, different income taxes +€345 million

Reimbursements of taxes totaled €6.181 billion, including €784.8 cardinal from Attiki Odos concession revenues, leaving nett taxation revenue €5.396 billion, +€685 cardinal supra target.

Public Spending Overview

Total expenditures for the play amounted to €46.494 billion, €3.161 cardinal beneath budget, owed chiefly to the timing of transfers to societal information funds and defence programme payments. Key allocations included:

• Healthcare and hospitals: €897 million
• Universal work vigor costs (YKO): €400 million
• National Health Procurement Authority (EKAPY): €377 million
• Public transport subsidies (OASA, OASTH, OSE): €251 million
• Universities: €145 million

Investment spending reached €7.04 billion, somewhat beneath the people by €106 cardinal but up €491 cardinal versus the aforesaid play past year.

The strong budgetary execution provides fiscal country for continued targeted taxation reliefs and societal enactment measures, reinforcing Greece’s economic resilience. Analysts enactment that sustained revenue overperformance will beryllium important successful offsetting inflationary pressures and maintaining Greece’s investment-grade outlook.