• Local government finances turn into a "black hole"
• Collected interest, dividends, and service provision revenues declined – Total expenditure increased

A warning bell is ringing behind the lines of the reduced fiscal surplus recorded for the General Government, covering the period from January to April 2026.

In the section report regarding the fiscal surplus by the General Government subsector during the first 4 months of 2026, a surplus of €166.8 million emerges, compared to €244 million in the corresponding 4 months of 2025.

Regarding Local Government, a deficit of €9.8 million is recorded for the first 4 months of 2026, compared to a deficit of €9.2 million for the corresponding 4 months of 2025.

For the Social Security Funds (SSF), a surplus of €436.4 million is presented from January to April 2026. In the corresponding 4 months of 2025, a surplus of €389.2 million had been recorded.

For the General Government as a whole, including the subsectors mentioned above, the decrease is clear: during the first 4 months of 2025, a surplus of €614 million was recorded, whereas in the first 4 months of 2026, the fiscal surplus achieved stands at €593 million. Specifically, the reduction in the surplus amounts to €20.6 million.

A reading of the Statistical Service data, which was released a short while ago, demonstrates clear figures and downward trends in the fiscal surplus, which will become fully clear upon the completion of the first half of the year.

As stated by the Statistical Service, total revenue during the period of January–April 2026 increased by €194.4 million (+4.0%) and reached €4,995.1 million, compared to €4,800.7 million in the corresponding period of 2025.

Revenue from taxes on income and wealth increased by €121.0 million (+10.3%) and amounted to €1,291.5 million, compared to €1,170.5 million in 2025.

Social contributions increased by €128.9 million (+8.3%) and reached €1,687.2 million, compared to €1,558.3 million in 2025.

Total taxes on production and imports increased by €42.5 million (+2.9%) and amounted to €1,533.4 million, compared to €1,490.9 million in 2025, of which net VAT revenue (after deducting refunds) increased by €53.5 million (+5.4%) and reached €1,047.2 million, compared to €993.7 million in 2025.

Capital transfers increased by €8.6 million and amounted to €16.4 million, compared to €7.8 million in 2025.

On the contrary, collected interest and dividends decreased by €23.6 million (-27.8%) and were limited to €61.2 million, compared to €84.8 million in 2025.

Revenue from the provision of services decreased by €43.6 million (-12.0%) and was limited to €318.4 million, compared to €362.0 million in 2025.

Current transfers decreased by €39.4 million (-31.2%) and were limited to €87.0 million, compared to €126.4 million in 2025.

Total expenditure during the period of January–April 2026 increased by €215.0 million (+5.1%) and reached €4,401.7 million, compared to €4,186.7 million in the corresponding period of 2025.

Specifically, intermediate consumption increased by €20.9 million (+5.1%) and reached €431.2 million, compared to €410.3 million in 2025.

Compensation of employees, including imputed social contributions and pensions of civil servants, increased by €24.5 million (+1.9%) and reached €1,294.5 million, compared to €1,270.0 million in 2025.

Social benefits increased by €109.6 million (+6.4%) and reached €1,823.5 million, compared to €1,713.9 million in 2025.

Interest paid increased by €28.6 million (+19.2%) and reached €177.3 million, compared to €148.7 million in 2025.

Current transfers increased by €39.8 million (+13.6%) and reached €331.7 million, compared to €291.9 million in 2025.

The capital account decreased by €2.8 million (-0.9%) and was limited to €320.0 million, compared to €322.8 million in 2025, of which gross fixed capital formation decreased by €8.9 million (-3.5%) and was limited to €244.3 million, compared to €253.2 million in 2025, and other capital transfers increased by €6.1 million (+8.8%) and reached €75.7 million, compared to €69.6 million in 2025.

On the contrary, subsidies decreased by €5.6 million (-19.2%) and were limited to €23.5 million, compared to €29.1 million in 2025.

It is noted that regarding a number of General Government entities, specifically within the Local Government subsector, estimations have been produced due to the non-submission of sufficient data by the competent authorities.

Source: Brief