The government announced a budget hole of € 528.8 million

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A deficit of more than € 0.5 billion is presented by the state’s budget in the first five months due to the March lockdown, which significantly reduced economic activity, while the payment of benefits by the state also contributes negatively.

The data announced today by Cystat reflects the fall in the balance sheet with the launch of expenditures.

€ 207 million increase in expenditures

Total expenditures increased by € 206.6 million (+ 31.8%) and amounted to € 856.3 million from € 649.7 million in May 2019.

Among the main categories of expenditures, subsidies increased by € 133.1 million in May 2020 compared to May 2019 (amounting to € 136.4 million from € 3.3 million), intermediate channeling by 49 , 4% (amounted to € 116.1 million from € 77.7 million), current transfers by 19.2% (amounted to € 50.8 million from € 42.6 million) and social benefits by 4.3% (amounted to € 241.4 million from € 231.4 million).

Total revenues fell by € 249.6 million (-38.5%) and were reduced to € 399.5 million in May 2020 from € 649.1 million in May 2019.

Of the main revenue categories, in May 2020, compared to May 2019, total taxes on production and imports decreased by 44.2% (reduced to € 124.7 million from € 223.5 million). net VAT revenue (after deducting refunds) by 32.4% (reduced to € 86.9 million from € 128.5 million), income tax revenue and wealth by 17.3% (reduced to € 82.3 million compared to € 99.5 million), social contributions by 39.7% (reduced to € 129.0 million from € 214.0 million) and income from benefits services by 41.3% (limited to € 44.9 million from € 76.5 million).

The increase in spending and the reduction in revenue for May 2020 are due in large part to the measures taken to support businesses and suspend work in various sectors of the economy, respectively, due to the coronation pandemic.

Total expenditures during the period January-May 2020 increased by € 323.0 million (+ 10.3%) and amounted to € 3,462.1 million compared to € 3,139.1 million in the corresponding period of 2019 It is noted that this significant increase in spending is due to spending on support measures to address the effects of the corona on employment, which amounted to € 216.1 million.

Intermediate consumption increased by € 195.4 million (+ 64.8%) and amounted to € 497.0 million compared to € 301.6 million in 2019.

Social benefits increased by € 56.2 million (+ 5.3%) and amounted to € 1,111.1 million compared to € 1,054.9 million in 2019.

Personnel earnings increased by € 48.4 million (+ 4.8%) and amounted to € 1,055.7 million compared to € 1,007.3 million in 2019.

Subsidies increased by € 194.5 million and amounted to € 212.6 million compared to € 18.1 million in 2019. The increase in this category is mainly attributed to business support measures due to the coronation pandemic.

The interest paid increased by € 25.9 million (+ 18.0%) and amounted to € 169.4 million compared to € 143.5 million in 2019.

Current transfers increased by € 41.0 million (+ 18.0%) and amounted to € 268.9 million compared to € 227.9 million in 2019.

The capital account decreased by € 238.4 million (-61.8%) and was limited to € 147.4 million compared to € 385.8 million in 2019. This decrease is mainly due to other capital transfers, the which decreased by € 282.4 million (-94.3%) and were reduced to € 17.1 million compared to € 299.5 million in 2019.

On the contrary, fixed capital investments increased by € 44.0 million (+ 51.0%) and amounted to € 130.3 million compared to € 86.3 million in 2019.

Income

Total revenues during the period January-May 2020 decreased by € 407.1 million (-12.2%) and were limited to € 2,933.3 million compared to € 3,340.4 million in the corresponding period of 2019.

Total taxes on production and imports fell by € 200.3 million (-15.8%) and were reduced to € 1,070.6 million compared to € 1,270.9 million in 2019, of which net VAT revenues (after deducting refunds) decreased by € 86.1 million (-10.8%) and were limited to € 711.6 million compared to € 797.7 million in 2019.

Revenues from income tax and wealth tax decreased by € 43.7 million (-6.2%) and were limited to € 655.8 million compared to € 699.5 million in 2019.

Social contributions decreased by € 113.4 million (-12.1%) and were reduced to € 822.6 million compared to € 936.0 million in 2019.

The interest received and dividends decreased by € 58.8 million (-92.0%) and decreased to € 5.1 million compared to € 63.9 million in 2019.

Capital transfers decreased by € 0.7 million (-1.2%) and were limited to € 55.8 million compared to € 56.5 million in 2019.

In contrast, the other revenue categories increased during the period January-May 2020.

Current transfers increased by € 7.8 million (+ 12.0%) and amounted to € 72.8 million compared to € 65.0 million in 2019.

Finally, revenues from services increased by € 2.0 million (+ 0.8%) and amounted to € 250.6 million compared to € 248.6 million in 2019.

The increases in certain categories of income and expenses are partially attributed to the implementation of the General Health Plan from 01.03.2019.

In 2019, the surplus of the general government amounted to € 603.0 million (2.8% in GDP) compared to a deficit of € 925.9 million in 2018 (-4.4% in GDP).

By Georgia Hanni