Budget 2023: Support measures of 3.5 billion in the shadow of the energy crisis

By Chrysostomos Tsoufis

Under conditions of extreme uncertainty caused by the sovousa energy crisis, its draft was submitted to Parliament budget for 2023. The 56-page text incorporates the €3.5 billion support measures announced by the Prime Minister at the TIF and foresees “reserves” of €1 billion in the form of a reserve to deal with negative developments on the “energy” war front.

Taking a traditionally conservative approach, the Ministry of Finance foresees growth rate 5.3% this year and 2.1% in 2023 driven by the explosion of investments in the first budget of the era after enhanced supervision.

At the same time, the admonition of the ESM to save fiscal space is being followed, so the bar for the primary deficit this year comes in at 1.7% of GDP, lower than the 2% predicted by the stability program. In 2023 the country returns to budget surpluses of 0.7% of GDP instead of 1% of the previous estimate.

The imprint of the energy crisis is evident everywhere in the text of the draft. THE inflation this year it is expected to close at 8.8% and to decline significantly to 3.1% next year. It is typical that in 2022 the government will have received €12 billion for the energy crisis, of which €11.3 billion will have been directed to subsidizing households and businesses for their electricity and natural gas bills. Of these, €2.5 billion will have come from the state budget and €9.5 billion € from the energy transition fund.

The subsidies they will continue in 2023, even more so when the Europeans have not yet found a common step towards a comprehensive solution that will bring down natural gas prices to bearable levels. From 2023 onwards, however, there will be permanent measures to boost taxpayers’ incomes amounting to 3.5 billion. €.

Of course, the complete stand out abolition of the solidarity levy for all incomes and the increase in pensions after 12 years. In addition, the reduction of 3 units in the insurance contributions of workers in the private sector becomes permanent. At the same time, at the beginning of next year, the process will begin that will lead to another increase in the minimum wage with implementation from May Day.

In addition, it is preserved until June the reduced VAT in tourism, sports and culture, the salary of the NHS doctors is reformed, the salary requests of the armed forces are settled, the special contribution of 1% in favor of the Civil Servants’ Welfare Fund is abolished, the student allowance is increased, incentives are given to increase full-time employment through a reduction in contributions and exemption from the pretension fee and a comprehensive action plan to support youth-centred housing is being implemented.

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