State budget records €898M surplus in January–February

Specifically, according to a related announcement from the General Accounting Office of the State, tax revenues—excluding the one-off transaction of the Egnatia Odos concession—amounted to €11.474 billion, representing a shortfall of €386 million compared to the target.

The primary reason for this deviation is attributed to taxes on energy products (Excise Duties and VAT), where collections fell short by €286 million. This shortfall is mainly due to January, when transaction taxes were lower because of Customs and national road blockages in December.

More specifically, Excise Duties (ED) decreased by €223 million relative to the target. A similar—though smaller—effect was observed in February revenues due to market disruptions extending into early January. In February, total VAT revenues actually exceeded the monthly target.

A second factor contributing to the shortfall was Income Taxes, which fell short by €90 million, with Corporate Income Tax underperforming by €84 million.

According to the state budget execution data announced by the Ministry of National Economy and Finance, for the period January–February 2026, the state budget recorded a surplus of €898 million, compared to the projected deficit of €97 million for the same period in the 2026 Budget explanatory report and a surplus of €709 million for the corresponding period in 2025.

The primary balance on a modified cash basis reached a surplus of €2.990 billion, versus a target of €1.957 billion and a primary surplus of €2.802 billion for the same period in 2025. Excluding €126 million relating to timing differences in payments for defense programs, €591 million for timing differences in Public Investment Program (PIP) payments, and €200 million for timing differences in other capital transfers—which do not affect the General Government fiscal outcome—the surplus in the modified cash basis primary balance exceeded the budget target by €117 million. It should be noted that the primary balance on a fiscal basis differs from the cash-based outcome. Moreover, these figures refer to the primary balance of the Central Administration, not the total General Government, which also includes the fiscal results of Legal Entities and sub-sectors of local authorities and social security funds.

As noted in the announcement, January 2026 revenues included amounts from transactions necessary for the completion of the Service Concession Agreement for the financing, operation, maintenance, and exploitation of the Egnatia Odos motorway and its three (3) vertical axes for 35 years, ratified by Law 5260/2025 (A’ 229).

Specifically, an amount of €306 million relating to 24% VAT on the transaction price was paid by the concessionaire to the Greek State, recorded under “Taxes,” and accompanied by an equivalent tax refund. Subsequently, the same €306 million was returned to the Greek State and recorded under “Sales of goods and services.”

Data for the First Two Months
For the period January–February 2026, net revenues of the state budget amounted to €11.987 billion, reflecting a shortfall of €127 million compared to the target included in the explanatory report of the 2026 Budget. Revenues from major categories of the state budget are as follows:

I. Taxes
Tax revenues reached €11.780 billion, including €306 million from the Egnatia Odos Concession Agreement. Excluding this amount, tax revenues amounted to €11.474 billion, down €386 million or 3.3% from the target, primarily due to lower collections of energy-related taxes (ED, VAT) by €286 million. For the main taxes within this category:

• VAT revenues reached €5.487 billion, exceeding the target by €351 million. Excluding the €306 million from the concession, VAT revenues exceeded the target by €45 million.
• Excise Duties amounted to €869 million, below the target by €223 million.
• Property taxes totaled €177 million, below the target by €9 million.
• Income tax revenues reached €4.394 billion, below the target by €90 million: Personal Income Tax exceeded the target by €83 million, Corporate Income Tax fell short by €84 million, and other income taxes were below the target by €89 million.

II. Social Contributions reached €10 million, near the target.

III. Transfers amounted to €680 million, below the target by €201 million. Of this, €614 million pertains to PIP revenues, down €176 million relative to the target.

IV. Sales of Goods and Services totaled €569 million, including €306 million from the Egnatia Odos Concession. Excluding this, revenues reached €263 million, exceeding the target by €65 million.

V. Other Current Revenues reached €415 million, above the target by €82 million. Of this, €101 million pertains to PIP revenues, exceeding the target by €56 million.

Revenue refunds amounted to €1.468 billion, €300 million above the target (€1.168 billion), largely due to the €306 million VAT refund from the Egnatia Odos Concession. Total Public Investment Program (PIP) revenues amounted to €715 million, €120 million below the target (€835 million).

February Performance
In February 2026, net revenues totaled €5.848 billion, €162 million below the monthly target. Revenue breakdown by major category:

• Taxes: €5.662 billion, down €62 million (1.1%) from the target.
  • VAT: €2.351 billion, above the target by €94 million.
  • Excise Duties: €476 million, below target by €69 million.
  • Property Taxes: €87 million, below target by €2 million.
  • Income Taxes: €2.334 billion, down €47 million: Personal Income Tax €1.456 billion, Corporate Income Tax €665 million, Other Income Taxes €214 million.
• Social Contributions: €5 million, in line with the target.
• Transfers: €625 million, below the target by €85 million; PIP revenues €568 million, down €119 million.
• Sales of Goods and Services: €90 million, below target by €12 million.
• Other Current Revenues: €139 million, below target by €7 million; PIP component €8 million, down €10 million.

Revenue refunds amounted to €672 million, €4 million below the target (€676 million). Total PIP revenues reached €576 million, €129 million below the target (€705 million).

State budget expenditures for January–February 2026 totaled €11.088 billion, €1.122 billion below the target (€12.211 billion) and €54 million higher than the same period in 2025.

Within the Regular Budget, payments were €217 million below target, mainly due to timing differences in defense program payments (€126 million) and other capital transfers (€200 million). Investment expenditures totaled €875 million, €906 million below target and €464 million lower than the same period in 2025.

The Ministry of National Economy and Finance notes that at the start of the fiscal year, agencies prioritize credit allocations to settle unpaid obligations from previous years and fulfill multi-year commitments.