Abstract. This paper examines the evolution of government expenditure, tax policy, and effective tax rates in Greece over the post-transition period 1974–2018. Using a comprehensive fiscal dataset and the Martinez-Mongay methodology for estimating effective tax rates, the study provides an integrated view of how expenditure dynamics and tax structures shaped the country's macroeconomic performance before and after key political and economic shifts. The analysis highlights the interplay between fiscal consolidation episodes, tax reforms, and expenditure pressures, while identifying structural weaknesses—particularly the heavy reliance on indirect taxation and the volatility of public investment. Empirical results show that shifts in effective tax rates significantly affected revenue composition and that expenditure rigidities constrained fiscal adjustment capacity. The findings contribute to a deeper understanding of Greece's fiscal trajectory, offering implications for sustainable tax policy design and long-term public finance management.

Keywords: government expenditures, tax policy, effective tax rates, Martinez-Mongay methodology, fiscal consolidation, Greece, public finance, tax structure, revenue composition.