The performance budget is a very important development because on the one hand it allows the Ministry of Finance to do its job better and to know where the public money is going on the other hand because it enables the Parliament to have a documented analysis and classification of public money to make a more documented and in-depth discussion, as stated by the coordinator of the State Budget Office in Parliament, Frangiskos Koutentakis.
In the discussion of the 2022 budget, which concludes today in the Parliamentary Committee on Economic Affairs, Mr. Koutentakis also spoke about the uncertainties of the new budget, ie the evolution of the pandemic and inflation, noting that if the expectations for a rapid reduction of inflation do not confirmed, there is a risk that central banks will shift to a tighter monetary policy. “This is a very serious risk, especially in countries with high debt, such as Greece, because the consequence will be an increase in interest rates.
This, therefore, should be noted and monitored as a serious uncertainty for the future and remind that the return of Greece to fiscal stability is a necessary condition, so that it can respond to possible monetary policy disturbances “, said Mr. Koutentakis .
In detail, the coordinator of the State Budget Office stated that “the performance budget, which is a continuation of an effort that started in 2005, 2006, came back during the adjustment programs, came back with organizational changes in 2017 and in this year’s budget we see the end of this effort which has been supported over time and is the much more detailed and transparent picture of public financial expenditure “. “It is a very useful tool from an executive point of view, because it allows the Ministry of Finance to do its job better, to know what is done for each use and where the public money goes and it is also useful from the parliamentary point of view,” he added.
“Having a well-documented analysis, a classification of the use of public money, to serve specific social needs, enables Parliament to judge the budget on much better terms and to have a much more informed and in-depth discussion. “This is, therefore, a very important development and gives the possibility to the next budgets to see them even more in detail”, he stressed addressing the parties.
Mr. Koutentakis, referring to the important amounts of the budget, said that the changes, in relation to the draft budget, have to do with the growth rate in 2021 projected at 6.9%, from 6.1% in the draft , and with the extent of the adjustment next year since from 11 billion provided in the draft it is reduced to 9.6 billion. “The adjustment of 9.7 billion again becomes much less frightening, if we consider that during the pandemic we had extraordinary fiscal interventions of about 9% of GDP per year”, he pointed out.
Regarding the budget uncertainties, he stressed that they concern the development of the pandemic, “the picture today is not at all encouraging”, he stated characteristically and added that the uncertainties also concern the permanent losses that the recession may have caused in the workforce. productive capital of the economy, concern the ability of taxpayers to meet the obligations of the next year and most importantly have to do with the issue of inflation. Especially on the issue of inflation, Mr. Koutentakis commented that if expectations for a rapid decline in inflation are not confirmed, there is a risk of the attitude of central banks worldwide. The possibility, that is, seeing higher inflation, for the central banks to begin to reverse their monetary policy to the strictest. “This is a very serious risk, especially in countries with high debt, such as Greece, because the consequence will be an increase in interest rates. This, therefore, should be noted and monitored as a serious uncertainty for the future and remind that the return of Greece to fiscal stability is a necessary condition, so that it can respond to possible monetary policy disturbances “, stressed Mr. Koutentakis .
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