Government budget balance

The International Monetary Fund forecasts a primary surplus of 2.1% of GDP for Greece this year and a decrease in public debt by 10 percentage points to 158.8% of GDP in its report on fiscal developments (Fiscal Monitor).

According to data released by the Treasury and Finance Ministry, the treasury cash balance posted a deficit of 198 billion Turkish Liras ($6.2 billion) in February.

Cash revenues rose from 208 billion liras in February 2023 to 563 billion liras last month, while expenditures leaped 100 percent to 761 billion liras.

The state budget balance for January-December of 2023 presented a deficit of 3.76 billion euros, against a target for a deficit of €8.34 billion that has been incorporated into the 2024 budget introductory report, and a deficit of €11.65 billion for 2022.

European Union finance ministers agreed on Wednesday on changes to the EU's fiscal rules updating them to the post-pandemic realities of high public debt and the need for massive public investment to fight climate change.

The pact is complex but is built on two crucial principles: an upper limit for a country's national budget deficit, and an upper limit for its total public debt.

The government's priority is to fight inflation, Treasury and Finance Minister Mehmet Şimşek has said, noting that revenue and expenditure policies that would restore fiscal discipline are being implemented.

The Greek state budget recorded a primary surplus of 2.166 billion euros in the January-June 2023 period, up from a budget target for a surplus of €415 million and a primary deficit of €3.425 billion in the same period last year, the Finance Ministry said on Monday.

In the first major financial crisis of the 21st century which erupted in 2007-2008, and whose tsunami reached Europe's shores in 2010, five European countries failed to avoid bailouts: Greece, Ireland, Portugal, Cyprus and, in part, Spain. Of these, only one, Greece, had twin deficits - in its current account and its budget.

Tax revenue significantly surpassed targets in the first quarter of 2023, the Finance Ministry said on Wednesday.

In a report on the budget execution on an amended cash basis for January-March, the ministry said that tax revenue totaled €13.68 billion in the three-month period, up 12.4% from budget targets, helping the state budget to record a primary surplus of around €3 billion.

The Ministry of Finance is preparing a draft Budget 2023 with a deficit of 3%, tax changes and cutting some expenses. This became clear at a briefing by Acting Finance Minister Rositsa Velkova.

The project provides for:

Fitch Ratings upgraded Greece's credit rating to BB+ with a stable outlook on Friday, taking it to within one step of investment grade.

The upgrade reflects the country's improved fiscal outlook, reduced risks in the banking sector, structural momentum, macroeconomic outlook and the acquired speed of reforms, deceleration of inflation and stable funding costs.