2022 vs 2019 or maybe 2009?

Written by Kostas Stupas

1) 2022 vs. 2019 or maybe 2009;

In the nine months from January to September 2022, tax revenue registered a surplus of 13.7% or 4.9 billion euros, to 40.644 billion euros. Combined with a deficit of 605 million euros in spending, we end up with a primary surplus of 37 million euros for the ninth month, against a target for a primary deficit of 5.943 million euros and a primary deficit of 5.960 million euros for the same period. in 2021.

See: Core surplus in the ninth month with an increase in revenue of 4.9 billion euros

2019

In January-September 2019, total tax income amounted to €36,232.99 million, an increase of €467.12 million, or 1.31% over the corresponding period of 2018.

The primary result came with a surplus of 4,479 million euros, against the target of a primary surplus of 1,467 million euros and a primary surplus of 2,523 million euros for the same period in 2018 that had been projected in the budget.

See: At 36.2 billion revenue taxes in the nine months

The first observation is that in the ninth month of 2022 with tax revenue of 40.6 billion euros, an increase of 4.4 billion euros, we have a primary surplus of only 37 million and we celebrate because we do not have a deficit of 5.9 billion euros.

I have no doubt that the conditions of 2022 are very different from the conditions of 2019. In 2020 and 2021 we had the pandemic that turned a lot of things upside down in terms of economic activity and in 2022 we have the war in Ukraine and the energy crisis.

Many argue that we are in a period similar to those that preceded major social, political and geopolitical tensions and upheavals. Many do not hesitate to compare this period to the one that preceded the major military confrontations.

Much of the increase in tax revenue this year based on logic is due to inflation. If for example more than 70% of the retail price of gasoline is taxes, so logically doubling its price has a similar effect on tax revenue…

Greece has the highest rates of indirect taxes, special taxes and value-added tax, making it a country with a prohibitive cost of living.

On the other hand, low competitiveness which is largely due to the existence of state apparatuses of high cost and low efficiency due to party merit makes wages low.

Political servants of all factions are everywhere and always like to distribute the money they collect from one to the others. In this way, he gets a price to interact and engage with the electorate.

The high cost of living coupled with low wages is an explosive social and political mixture, the consequences of which will soon become apparent…

2) Liz lesson and Erdogan’s chance…

Good evening Mr. Stupa

The truth is that Greece is in a very advantageous position compared to the European partners but also against China and other partners due to the fact that it is in the middle of nowhere as most of the debt is serviced with average “predatory” interest rates of 1.5%.

Inflation contributes the most to growth and debt.

If we only start acting the UK or the age of drums and jingles, with a good mix of support with private investment and also government investment from the Covid package, I think we can gain a lot of lost ground against others given that Germany, France, UK, Turkey, Russia, China, is probably in the worst position in terms of prospects for the past 40 years.

In terms of investments, we are probably doing well, if at the same time improving our institutions (justice and government services such as health, education, etc.) are also continuing, I think we can say that the better is the future of us.

As long as we don’t kick the carder with milk again!!

Best regards

Tasos K

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