Tax revenues reach 6.207 billion in January

Greece achieved a primary surplus of 3.51 billion euros in January 2026, significantly surpassing the government’s initial target of 1.751 billion euros, according to preliminary state budget execution data. The strong fiscal performance represents a substantial improvement over the 1.98 billion euro primary surplus recorded during the same month in 2025, demonstrating continued momentum in the country’s budgetary discipline.

According to the modified cash basis data, the overall state budget balance posted a surplus of 2.287 billion euros for January, far exceeding the target surplus of 543 million euros outlined in the 2026 Budget report. Net state budget revenues totaled 6.136 billion euros, coming in 33 million euros or 0.5 percent above projections for the month.

Tax Revenue Performance Drives Greece Primary Surplus

Tax revenues played a crucial role in the Greece primary surplus achievement, reaching 6.207 billion euros and exceeding the monthly target by 71 million euros, or 1.2 percent. The revenue collection outperformance suggests improving tax compliance and stronger-than-expected economic activity in the opening month of the year.

However, officials cautioned that the headline figures require careful interpretation due to timing factors. Approximately 1.272 billion euros related to the timing of transfer payments to general government entities affected the cash-based result, along with 379 million euros linked to delayed investment expenditure payments.

Adjusted Figures Show Modest Outperformance

When accounting for these timing differences in transfer payments and investment expenditures, the primary surplus on a modified cash basis exceeded the budget target by an estimated 108 million euros. These timing-related amounts do not ultimately impact the general government result in fiscal terms, according to authorities.

Additionally, government officials emphasized important distinctions in interpreting the data. The primary result measured in fiscal terms differs from the cash-based result presented in the preliminary January figures, they noted.

Meanwhile, the reported figures reflect only the primary balance of the Central Administration sector. The overall General Government balance encompasses broader fiscal outcomes, including results from legal entities, local authorities, and social security funds, which were not included in the January preliminary data.

Context Behind Strong Fiscal Performance

In contrast to previous years when Greece struggled with budget deficits and fiscal challenges, the country has demonstrated consistent progress toward fiscal sustainability. The primary surplus metric, which excludes interest payments on debt, serves as a key indicator of the government’s ability to manage its finances without relying on borrowing for operational expenses.

The surplus performance comes as Greek authorities continue implementing fiscal reforms and work to maintain budgetary discipline amid broader European economic uncertainty. State budget revenues remaining broadly aligned with targets suggests that government forecasting models are accurately capturing economic conditions.

Furthermore, the year-over-year improvement in the primary surplus from 1.98 billion euros in January 2025 to 3.51 billion euros in January 2026 indicates strengthening fiscal fundamentals. This progression reflects both revenue collection improvements and expenditure management efforts by Greek authorities.

Government officials will continue monitoring monthly budget execution data throughout 2026 to assess whether the strong January performance represents sustainable fiscal trends or temporary factors. The coming months will reveal whether Greece can maintain this surplus trajectory and meet annual fiscal targets established in the 2026 Budget report, though authorities have not yet provided specific guidance on full-year expectations based on the January results.