A key factor in the revenue windfall was the earlier-than-usual collection of personal income taxes.
Greece recorded a significant fiscal outperformance in the first five months of 2025, with tax revenues well above expectations, offering a major boost to its budgetary position. According to official data on a modified cash basis, the country posted a primary surplus of €5.34 billion between January and May, far surpassing the budgeted target of €1.06 billion. For comparison, during the same period in 2024, the surplus stood at €3.2 billion, signaling a notable improvement in public finances this year.
The overall state budget balance also showed a sharp turnaround, with a surplus of €1.88 billion, compared to a targeted deficit of €2.48 billion. A year earlier, Greece had reported a deficit of €535 million during the same period. This positive outcome was largely driven by stronger-than-anticipated tax revenues, which reached €26.95 billion, exceeding projections by €1.68 billion, or 6.6 percent.
A key factor in the revenue windfall was the earlier-than-usual collection of personal income taxes. Approximately €665 million in revenue, initially expected later in the year, was collected earlier thanks to the advanced launch of the tax return submission system in mid-March. Overall, income tax revenues totaled €9.17 billion, outperforming the target by €967 million. Of that, personal income taxes alone contributed €817 million more than expected, while other types of income taxes added an additional €221 million above projections. However, corporate income tax revenues underperformed slightly, coming in €70 million below target due to early payments made at the end of 2024.
Other major tax categories also contributed to the budget's strong performance. Revenues from value-added tax (VAT) rose to €10.99 billion, surpassing expectations by €271 million, reflecting resilience in consumer spending. Excise tax revenues reached €2.79 billion, €58 million above target, while property tax collections brought in €1.53 billion, exceeding projections by €139 million.
In total, net state revenues for the January–May period amounted to €28.97 billion, €1.63 billion above the official target. Adjusted for technical factors such as specific one-off transactions and timing shifts in spending that do not impact the overall fiscal picture, the excess in the primary surplus is estimated at €1.45 billion.
On the expenditure side, the government kept spending well below forecast. Total expenditures reached €27.09 billion, significantly lower than the €29.81 billion target. This reduction was primarily due to deferred transfers to public sector entities and delayed investment spending. Payments under the regular state budget were €2.22 billion below target, largely owing to delayed disbursements to social security funds and defense procurement programs.
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