A decrease in revenues and a slight increase in expenses are observed from the data on the implementation of the state budget during the first five months of 2024.

According to a report by the General Accounting Office of the Republic, the implementation of the overall state budget for the period from January 1 to May 31, 2024, stood at 28%, compared to an average of 31% over the past decade and 29% in the same period of 2023. It is noted that the highest implementation rate for the years 2020-2021 was mainly due to the seasonality of public debt repayments.

A significant reduction in revenues is observed, mainly attributed to the decrease in inflows from the issuance of the European Medium-Term Note (EMTN), which had a significant impact on the revenues of 2023.

Total revenues up to the end of May 2024 amounted to 3.33 billion euros, which corresponds to 30% of the budgeted amount for the year. This is reduced compared to the 4.10 billion euros (42%) that had been collected during the same period of 2023.

Regarding revenues, Indirect Taxes increased by €0.07 billion (4%) compared to 2023, mainly due to an increase in VAT revenues by €0.03 billion (2024: €1.23 billion, 2023: €1.20 billion). Direct Taxes increased by €0.19 billion (18%) compared to 2023, mainly due to an increase in Income Tax from Legal and Natural Persons (2024: €1.07 billion, 2023: €0.87 billion). By the end of May, loan withdrawals amounted to €0.03 billion (2023: €1.0 billion).

Correspondingly, the actual state expenditures for the same period of 2024 amounted to 3.69 billion euros.

Regarding the implementation of expenditures, spending on salaries, pensions, and gratuities increased by 6%, from €1.20 billion in 2023 to €1.27 billion in 2024. Loan and interest repayments reached €0.53 billion, up from €0.44 billion in 2023. Social benefits increased by €0.08 billion, reaching €0.76 billion, with the increase attributed to higher social welfare and health benefits. Transfers and subsidies increased by €0.02 billion, reaching €0.64 billion, due to an increase in the General Government Contribution to the Social Insurance Fund. Operating and other expenses decreased by 14%, with expenses reaching €0.32 billion, from €0.37 billion in 2023.

It is noted that the total budget for 2024 presents a 16% increase in revenues, reaching 11.28 billion euros, compared to 9.77 billion euros in 2023. Expenditures are expected to increase by 9%, from 12 billion euros in 2023 to 13.1 billion euros in 2024.

The projected increase in revenues is mainly due to a rise in indirect and direct taxes by €0.68 billion and €0.61 billion, respectively. The projected increase in expenditures is mainly due to higher loan and interest repayments and spending on salaries, pensions, and gratuities by €0.77 billion and €0.35 billion, respectively.

The implementation of the state budget until May 2024 increased concerning development expenditures.

According to the data provided, over the past decade, the average implementation rate of the state budget for development expenditures until May was 16%, while the implementation rate for 2024 stands at 18%. The corresponding rate for 2023 was 17%.

Development expenditures include capital expenditures, co-financings, and other financings, grants, contributions and subsidies, social benefits, as well as other expenditures.

According to the report, capital expenditures account for 41%, co-financings and other financings for 25%, grants, contributions, and subsidies for 17%, social benefits for 10%, and other expenditures for 7%.

During the corresponding period of 2023, capital expenditures accounted for 36%, co-financings and other financings for 26%, grants, contributions, and subsidies for 24%, social benefits for 10%, and other expenditures for 4%.