State revenues showed fatigue in first quarter of year

Lackluster budget revenues have led to a reduction of the primary surplus in the first quarter of the year, according to provisional figures released on Tuesday by the State General Accounting Office.

The government is arguing that the shortfall in state revenues of 1 billion euros below the budget target is due to a delay in March in the collection of a one-off payment from Fraport Greece for the concession of 14 regional airports, which was eventually was paid this month. However, even if that 1.234 billion euros had been paid on time, revenues would still have just been within target, well below last year's overperformance.

The main cause is that tax revenues are showing strong signs of fatigue, with takings from significant sources such as the monthly tax withheld from salaries and revenues, and the 20 percent tax withheld from freelancers' invoices, showing a drop...