The overall state budget balance posted a surplus of €2.287 billion, significantly exceeding the €543 million target included in the 2026 Budget Report, as well as the €758 million surplus recorded in January 2025, according to preliminary execution data released by the Ministry of National Economy and Finance.
However, the fiscal outturn is materially affected by payment timing shifts. Specifically, an amount of €1.65 billion is not reflected in the General Government result on a fiscal basis, as it relates to the rescheduling of transfer payments to General Government entities (€1.272 billion) and delays in investment expenditure (€379 million). After these adjustments, the primary balance overperformance on a modified cash basis narrows to approximately €108 million.
Marginal Revenue Overperformance
According to data from the General Accounting Office, net state budget revenues amounted to €6.136 billion, exceeding the target by €33 million, or 0.5%. Tax revenues reached €6.207 billion, up by €71 million, or 1.2%, compared with projections.
January’s figures also reflect transactions related to the completion of the 35-year concession agreement for the Egnatia Odos motorway and its vertical axes. In particular, €306 million in VAT on the concession fee was recorded as tax revenue and accompanied by an equivalent tax refund, while the same amount was also registered as revenue from the sale of goods and services.
Revenue refunds totaled €795 million, exceeding the target by €304 million, mainly due to the VAT refund linked to the concession agreement. Public Investment Programme (PIP) revenues stood at €139 million, slightly above target.
Lower Expenditure Due to Payment Rescheduling
State budget expenditure amounted to €3.85 billion, €1.71 billion below target and €1.383 billion lower compared with January 2025.
Under the regular budget, payments were reduced by €1.331 billion, primarily due to the rescheduling of transfers to General Government entities. Investment expenditure totaled €427 million, €379 million below target and €309 million lower year-on-year.
It is noted that the above data concern the Central Government balance and not the consolidated General Government outcome, which also includes local authorities, social security funds, and other legal entities.