The Greek government collected surplus revenues of €19.7 billion from taxes in the four-year period from 2022 to 2025. Part of that was converted into permanent benefits, allowances and aid to vulnerable groups and those affected by natural disasters, along with measures to address the pandemic and the energy crisis.
There was also an increase in the Public Investment Program, which doubled the national component in recent years, mainly going to defense spending and hospitals.
Essentially, the additional revenues were returned either through increases in wages and pensions, or abolition of taxes such as the solidarity levy and the fee for practicing certain professions, the reduction of social security contributions, etc.
The energy crisis bill amounted to €14.7 billion, some of which came from the budget and some from the revenues of the Energy Transition Fund. According to the budget data of the last four years, fiscal interventions in 2022 came to €3.3 billion, in 2023 to €4.8 billion concerning interventions to address the energy crisis and €2.1 billion for aid to pensioners, abolition of the solidarity contribution, etc. In 2024, they reached €2.5 billion, and last year they amounted to €2.95 billion.
The increase in revenue is attributed, among other things, to the expansion of electronic transactions, which revealed undeclared incomes, as well as to high inflation, with energy and food prices recording a significant increase and, therefore, also the state’s revenue from their taxation.
Meanwhile, citizens are faced with rising prices every day, while the state collects more and more revenue from VAT and excise taxes. The country now seems to largely base public revenue on consumption, as a result of which collections from these taxes are climbing to new heights.
However, beyond inflation, increased tourism flows, enhanced consumption due to wage increases and the measures against tax evasion also play a role in the rise in indirect taxes.
