The government budget primary surplus on a modified cash basis stood at 2.987 billion euros in Q1 2024, exceeding the target of 2.133 billion and 3.079 billion euros for the same period in 2023.
The tax revenues of the budget were over the target in Q1 of 2024, thanks in part to high costs. According to the Ministry of National Economy and Finance, revenues from “Taxes” amounted to 14.844 billion euros, an increase of 598 million euros or 4.2% compared to the target included in the Budget 2024 proposal.
Value Added Tax (VAT) revenues reached 5.876 billion euros, down by 16 million euros compared to the target.
Notably, a significant portion of the difference in the primary surplus against the target in cash terms is not counted in the 2024 fiscal result in budgetary terms.
For example, an amount of 159 million euros related to revenues from the Recovery and Resilience Fund does not affect the budgetary result, while a significant portion of the difference in tax revenue collections amounting to 647 million euros is included in the fiscal result for the year 2023.
Therefore, the primary result in terms of the budget differs significantly from the cash result. Additionally, it is emphasized this concerns the primary result of the Central Administration and not the total of the General Government, which includes the fiscal results of Legal Entities and the subsidiaries of Local and Regional Authorities.
During January-March 2024, the net revenue of the state budget amounted to 16.823 billion euros, a rise of 430 million euros or 2.6% compared to the target included for the corresponding period in the Budget 2024 proposal.
Total revenues of the state budget amounted to 18.507 billion euros, up by 416 million euros or 2.3% compared to the target.
