Growth of 2.9% with GDP reaching 233.8 billion euros, a significant increase in private investment by 15.1% and a reduction in unemployment to 10.6%, foresees the 2024 budget, which is voted today in Parliament. A primary surplus of 2.1% of GDP is also foreseen, while the debt of the General Government will deescalate to 152.3% of GDP in 2024.

According to the Ministry of National Economy and Finance, the new budget is called upon to reconcile the goal of fiscal stability, which is the foundation for every effort, with the new needs that are created as well as with the basic project of society, after the inflationary crisis, i.e. the increase of disposable income and wages.

For this purpose, the budget has included all the measures announced before the elections to be implemented in 2023 and 2024, the measures announced at the International Exhibition of Thessaloniki, as well as additional support measures announced later, totaling 2.5 billion euros.

At the same time, the ministry points out, the major changes that the country needs are prioritized with a series of measures that have been announced to combat tax evasion. In this context, multi-level interventions are instituted which include, among other things, restrictions on the use of cash and the strengthening of electronic transactions, the full implementation of the electronic transfer of accounting records and an increase in the transparency and effectiveness of controls, the tightening of penalties as well as the reform of personal taxation businesses.

Fiscal interventions to boost income and address social inequalities are as follows:

*The reform of the special salary of the NHS doctors with an average increase of 10% and a cost of 65 million euros for 2024 and thereafter,

*the abolition of the solidarity levy for civil servants at a cost of 202 million euros per year and for pensioners at an annual cost of 274 million euros, which were established following the permanent abolition of the solidarity levy in the private sector,

*the settlement of salary requests of the Armed Forces at a cost of 58.5 million euros per year,

*the abolition of the 1% special levy in favor of the Social Insurance Institution with an annual cost of 80 million euros,

*the increase in the duration of the maternity allowance to nine months for women employed in the private sector at a cost of 64 million euros per year and

*the increase in OPECA and EFKA disability benefits by 8% from 1 May 2023 at a cost of 63 million euros for 2023 and 95 million euros for 2024 and thereafter.

At the same time, the following are foreseen:

*the reform of the public sector payroll to strengthen incomes in the public sector, support to a greater extent low-paid civil servants, families with children and those who hold a position of responsibility in the State (total budgetary cost of 25 million euros for 2023 and 931 million euros for 2024).,

*instituting increases with an annual cost of 7 million euros for the readjustment of special category pensions which fall under the jurisdiction of the Ministry of National Economy and Finance – GLK. Due to the retroactive effect of the regulation, depending on the category of pensioners, the fiscal cost is estimated at 5 million euros for 2023 and 56 million euros in 2024,

*the institutionalization of a permanent provision of 150 euros for the realization of purchases from companies active in the fields of culture, tourism and transport, in the context of the financial support of approximately 200,000 young people aged 18 and 19 (total budgetary cost of 31 million euros for each from the years 2023 and 2024),

*the permanence of the complete exemption of approximately 200,000 former EKAS beneficiaries from their participation in pharmaceutical expenses (fiscal cost of 38 million euros per year),

*the increase from December 2023 by 8% of the minimum guaranteed income for the income support of approximately 225,000 vulnerable households (fiscal cost of 4 million euros for 2023 and 43 million euros for 2024),

*the extension of the maternity allowance from 2024 to the self-employed and farmers to nine months, to deal with the low birth rate and support the family, following the already institutionalized increase to nine months for employees in the private sector (fiscal cost 40 million euros for 2024),

*the doubling of the “MY HOME” program with an additional 375 million euros in the form of loans, to deal with the particularly intense housing problem, especially for young people and to support family planning. It is noted that the total budget of the program amounted to 1 billion euros, of which 750 million euros come from DYPA’s cash reserves and the rest from the banks,

*the retroactive increase from July 1, 2023 of the flying allowance for pilots and crews of firefighting aircraft, with a budgetary cost of 700 thousand euros per year.

In addition to the above fiscal measures, the following interventions are applied to the labor market and the pension system:

*from January 2024, the three-year freeze for employees will be lifted,

*the 30% reduction in pensions for employed pensioners is abolished and replaced by a 10% contribution on the additional remuneration they receive from their work and

*the pensions are increased again from January 1, 2024 by the average of GDP growth and inflation 2023, with an estimated cost of 430 million euros.

Whereas, fiscal interventions concern:

*in the increase of the tax-free allowance by 1,000 euros for taxpayers with one or more dependent children (fiscal cost of 135 million euros for 2024),

*in the reduction of ENFIA by 10% for houses insured against natural disasters (fiscal cost of 26 million euros for 2024), and

*in reforming the capital market’s operating framework with significant investment and tax incentives:

a) reduction of the fundraising tax from 0.5% to 0.2% (annual fiscal cost of EUR 22 million),

b) a 50% reduction in the stock exchange tax (annual fiscal cost of 21 million euros), and

c) abolition of the bond interest tax on government and business bonds (annual fiscal cost of 7 million euros).

In addition, from January 2024, the reduced VAT rate applied since the period of the Covid-19 pandemic to transport, gyms and dance schools, cinemas and a range of goods related to public health is permanent, with an estimated cost of 305 million. euros per year. In addition, the reduced VAT rate on coffee and taxis is extended for the first half of the year 2024, with an estimated cost of €77 million over six months. The reduced rate does not extend to non-alcoholic beverages served, with an estimated saving of €37 million per year. The total fiscal cost of the above extensions is estimated at 382 million euros for 2024.