Overview Of The 2025 Government Budget Implementation

The General Accounting Office reported solid execution of the 2025 government budget, with revenues reaching 87% of projections and expenditures reaching 92% of planned levels. By comparison, execution rates in 2024 stood at 96% for revenues and 91% for spending.

Projected state revenue for 2025 totals €10.20 billion, down from €10.81 billion in 2024, while planned expenditures declined to €11.99 billion from €12.42 billion a year earlier.

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Revenue Performance: Borrowing Contractions And Tax Increases

The decline in overall revenue was largely driven by reduced borrowing, which fell to €0.10 billion from €1.17 billion in 2024. The shortfall was partially offset by stronger tax collection.

Direct taxes increased by €0.37 billion, while indirect taxes rose by €0.17 billion. VAT receipts reached €3.16 billion, up from €3.08 billion in the previous year, supported by higher consumption activity. Direct tax revenues rose 6%, driven mainly by higher personal and corporate income tax collections, which reached €3.79 billion.

Expenditure Management: Lower Debt Costs And Higher Social Support

On the expenditure side, reduced loan repayments lowered overall spending by €0.84 billion. At the same time, social benefits and transfers increased.

Social benefits rose by €0.10 billion to €2.02 billion, reflecting higher healthcare-related spending and increased allocations to the Renewable Energy Sources Fund. Transfers and grants grew by €0.18 billion, reaching €1.93 billion, supported by higher contributions to the Social Security Fund and increased subsidies to municipalities.

Development And Capital Expenditures: Infrastructure Focus

Capital expenditure execution reached €469.3 million in 2025, with investment concentrated in road infrastructure, construction projects, water and wastewater systems, and public facilities, including educational buildings.

Co-financed projects totaled €336.3 million, supporting non-governmental initiatives such as education and child nutrition programs, housing renovation schemes, and digital transformation projects.

Historical Context And Overall Performance

The report notes that average government spending execution over the past decade has been around 91%, placing 2025 in line with historical performance. Development expenditure execution reached 81%, improving from the long-term average of 69%, partly reflecting a €67.1 million reduction in the initial budget allocation.

For further details on the state budget and fiscal performance, you may refer to the official report by the General Accounting Office and the continuing analysis available from financial news platforms, including reports on government budgeting.