Greece primary surplus hits €3.65bn, triple the target, as VAT boosts revenues

Surplus more than triples target

The Ministry of National Economy and Finance reported a primary surplus of €3.65bn for the January–May 2026 period, far above the official target of €1.24bn. On a modified cash basis, the balance of the central government budget showed a surplus of €103m, compared to a planned deficit of €2.18bn. The same period in 2025 yielded a primary surplus of €5.34bn. Net revenues reached €30.22bn, outperforming the target by €2.53bn, largely due to the early collection of the seventh Recovery and Resilience Facility (RRF) tranche of €884m in April and higher than programmed public investment revenues.

VAT lifts tax intake to €28bn

Total tax revenues amounted to €28.03bn, or €27.59bn stripping out one‑off items from the Egnatia concession (€306m) and a casino licence payment in Elliniko (€135m). The adjusted figure still exceeds the target by €171m, or 0.6%. Value‑added tax collections were the main engine, bringing in €12.34bn, a €650m overshoot versus the plan. Even without the concession‑related VAT element, the outperformance stood at €344m. The ministry attributed the VAT strength to high consumer prices that pushed up nominal spending.

Mixed picture across other taxes

Property taxes added €1.51bn, €31m ahead of target. Income taxes came in at €8.85bn, a marginal €7m above goal, but the headline masked a €211m overshoot in personal income tax offset by a €105m shortfall in corporate income tax and a €99m deficit in other income categories. Special consumption taxes fell short: €2.58bn, or €224m below target, suggesting softer demand for heavily taxed goods. Social contributions were essentially flat at €23m.

One‑off factors and the underlying trend

Several timing effects distorted the headline surplus. Excluding scheduled shifts in defence payments, investment outlays, and general‑government transfers, as well as the €884m early RRF receipt and €574m in early public investment cash, the primary surplus outperformance narrowed to €246m on a modified cash basis. The ministry stressed that the fiscal‑accounting measure differs from the cash‑based result. These are central‑administration figures, not the general‑government aggregate that includes local authorities and social funds.