Primary budget surplus rose to €6.53 billion in January–August 2026

Greece's modified-cash state budget recorded a primary surplus of €6.53 billion in January–August 2026. The Finance Ministry attributed the improvement primarily to a strong August in tax receipts, with VAT and income tax providing the largest contributions.

On a budget-basis measure that excludes interest payments (primary balance), the surplus of €6.53 billion exceeded the year-to-date target of €4.99 billion. By contrast, the overall budget balance for January–August showed a deficit of €475 million. That outcome is an improvement relative to the programmed deficit of €1.61 billion for the eight-month period in the 2026 Budget Introductory Report.

Tax revenues outperformed expectations by €1.35 billion in the first eight months. The Finance Ministry singled out VAT and income tax as the biggest drivers behind the August uptick. The ministry's report also stated that higher prices and rising wages continued to be a factor in August's revenue performance.

Although the primary surplus beat its target, it remained below the primary surplus of €8.5 billion recorded for the same January–August period in 2025. The overall budget balance also shifted relative to last year: there had been a surplus of €1.96 billion for January–August 2025, while 2026 shows a deficit of €475 million.

A primary surplus above target gives the government more room to meet fiscal commitments without borrowing for interest costs, but the presence of one-off receipts means that some of the improvement may not repeat. The underlying drivers cited—VAT and income tax growth—signal continuing revenue strength linked to price and wage trends, but those same trends can complicate economic policy choices.

• VAT and income tax were the main, recurring revenue sources contributing to the improvement.
• The overall budget remained in deficit for January–August, albeit a smaller one than planned.

Look for the ministry's subsequent monthly execution reports to see whether tax momentum holds without one-off inflows, and monitor spending patterns that could widen the overall deficit even if primary figures remain strong.