Inflation significantly boosted state revenue in the first seven months

Soaring inflation has become a major driver of state revenue in Greece, with Value Added Tax (VAT) collections significantly exceeding targets. In the first seven months of 2026, VAT receipts amounted to 17.74 billion euros, surpassing the set goal by 739 million euros, even after accounting for extraordinary amounts.

While tourism figures remain comparable to the previous year, indicating it's not the sole driver of this revenue surge, the data points to a clear trend: higher prices for goods and services are directly translating into increased tax income for the state. As consumers pay more for everyday items and services, a larger portion of that spending flows into public coffers through VAT.

This situation, however, underscores the persistent pressure of high living costs on Greek households. Even as consumption continues, a greater share of disposable income is being allocated to cover essential needs at inflated prices, limiting discretionary spending and increasing the overall cost of living.

Overall tax revenues for the seven-month period reached 42.794 billion euros. The primary surplus for January-July 2026 was 5.77 billion euros, exceeding the target by approximately 1.35 billion euros, though it remains lower than the 7.939 billion euro surplus recorded in the same period of 2025. The state budget deficit was 344 million euros, significantly better than the targeted deficit of 1.323 billion euros.