The overdue debts of the State to individuals and businesses jumped to 3.9 billion euros, recording a new significant increase in August, at a time when the state budget is overspending above targets.

According to data from the Government Accounting Office, total state debts to suppliers, hospitals and taxpayers reached €3.882 billion, up from €3.541 billion in July and up €341 million in just 30 days.

The “race to the top” is again led by hospitals and pending tax refunds. Public hospital liabilities jumped to €1.627 billion, up €129 million from July, returning to their highest levels since the spring. The EOPYF, alone, now owes 305 million euros, while social security agencies as a whole have arrears of 651 million euros.

A similar picture is presented by pending tax refunds, which increased by €196 million in one month, reaching €928 million. Of these, 431 million relate to direct taxes and 392 million to indirect taxes, while only 288 million are considered overdue (more than 90 days). Even so, however, the rate of increase is indicative of the pressure on public repayment services, despite the fiscal space.

“Champions” on the arrears list remain health care, with hospitals accounting for more than 40% of the total amount of arrears. Despite the operation of the National Central Health Procurement Authority, supplier repayment times are lengthening, while EOPYY’s arrears are steadily increasing every month. From 2019 to date, hospital debts have more than quadrupled – from €344 million to €1.62 billion.

It is surprising that the increase in debts is recorded at a time when the state is running a surplus of more than 1.5 billion euros over the target. Simply put, the money is there – but it is not reaching the beneficiaries. The state apparatus systematically delays payments, either because of controls and procedures or to keep cash reserves high in view of the new budget.

The picture directly impacts the real economy: businesses that do business with the state see their liquidity squeezed, health care providers pass on costs to patients and consumers, while delayed tax refunds drain cash from the market. At the same time, rising arrears are working against the government’s efforts to reduce late payments ahead of the new European fiscal surveillance from 2026.

• • The detailed data from the General Accounting Office shows:
  • – Hospitals: €1.627 billion (+€129 million in one month)
  • – Social security institutions: €651 million
  • – Social security institutions: €651 million
  • – Local government: €251 million
  • – Local authorities: €251 million

(651 million euro, up by 651 million euro in 12 months (+121 million euro in 2001).

• • – Other legal entities: €227 million
  • – Other legal entities: €227 million
  • – Other legal entities: €227 million
  • – State Budget: € 198 million
  • – State Budget: € 198 million
  • – Pending tax refunds: €928 million

– Tax refunds: €928 million

The government acknowledges that the increase in overdue debts is a “structural management problem” and argues that there will be a de-escalation towards the end of the year as rebate and clawback offsets are completed and repayment procedures are accelerated through the General Accounting Office.

However, the figures show that the situation has solidified: from 2.3 billion euros in December 2024, debts have increased by 27.4% in eight months. If there is no immediate clearance and control over the cash flows of hospitals and insurance funds, the “frozen” state will continue to accumulate liabilities in an economy hungry for liquidity.