Chrysostomos Tsoufis

The first Monday of October, like today, is the day of submitting the draft budget to the Parliament.

A budget which will be fully coordinated with the Medium-Term Fiscal Structural Plan presented last week.

Based on these, the basic assumptions of the text will be the following:

Public Debt: 149.1% from 153.7% that will be formed at the end of this year

GDP: +2.3% (slight acceleration from this year’s 2.2%). And in 2025 the Greek economy will grow much faster than the Community average
Primary surplus : 2.5%
Inflation : 2.1% from 2.8% that will close this year
Unemployment: 9.7% returns to pre-crisis levels (9.6% in 2009)
Investments : +8.4%
Exports : +4%
Imports : +3.6%

The negotiations of the Ministry of Finance with the Commission had a positive result, so the government will next year be able to increase budget spending by 3.7% from the 3% set by the new fiscal rules due to the better initial estimates of the primary surplus this year (2 .4% against initial forecast for 2.1%).

This resulted in the Prime Minister’s announcements to the TIF being “fit” into the 2025 budget.

In total (including measures from previous years) the measures to increase incomes and reduce taxes for 2028 reach €3.8 billion.

Of these new ones, they cost €1.45 billion (€550 million are salary increases and €900 million tax reductions):

  • Contributions: New 1% reduction from New Year 2025. 0.5% from employees and 0.5% from employers. They concern the health sector. Cost €440m
  • Pension increase: Estimated at around 2.5 with a cost of €400 million
  • End of pretense: Abolition of it for freelancers. Cost €120m
  • Public wage increase: It will be equal to the new increase in the minimum wage that will be effective from April 1st 2025 so that the introductory wage does not fall short. The other scales will be increased by the same amount in order to avoid distortions in the salary of civil servants. Cost approximately €100m.
  • Agricultural oil: Permanentization of the tax return with the application of a zero rate from 2025. Cost €100m
  • ENFIA: 20% reduction in cases of home insurance worth up to €500,000 against natural disasters. Cost €40m
  • Public Productivity Bonus : Will be expanded to many more employees. Cost €40m
  • Doctors on call: Independent taxation at a rate of 22%. Cost €40m
  • Business: Incentives for innovation and mergers. Cost €40m
  • Stamp Fee : Eliminated for hundreds of transactions. Cost €30m
  • Fixed telephony fee: Remove it for fiber optic connections. Cost €26m
  • Night Compensation of Uniforms: 20% increase in the compensation of night workers in Police, Fire, Coast Guard, Armed Forces from 1/1/2025. Cost €25m
  • New Properties: Exemption from VAT. Cost €20m
  • Health Insurance Premiums: Exemption for children up to 18 years old. Cost €17m
  • Critical areas: Incentives to attract doctors. Cost €16m
  • Student Housing Allowance: Increase for regional universities from 1,500 euros to 2,000 euros per year and 2,500 in case of cohabitation. Cost €15m
  • Vacant properties: Three-year tax exemption for those rented on long-term contracts. Cost €13m
  • Business Allowances : Tax free when given to new parents. Cost €7m.

The draft budget will also include the measure of the extraordinary aid to pensioners with a personal difference that will be paid in December as follows:

  • €200 for pensions up to €700
  • €150 for pensions of €700.1 to €1,100
  • €100 for pensions of €1100.1 to €1600
  • Cost €100m

An additional €143m will be distributed to vulnerable groups:

  • €70m to OPECA child benefit beneficiaries who will receive an additional installment
  • €37m to beneficiaries of the OPECA DISABLED benefit who will receive €200
  • €7m to e-EFKA disability benefit beneficiaries who will receive €200
  • €7m to uninsured seniors who will receive €200
  • 22 thousand to beneficiaries of the Minimum Guaranteed Income who will receive half an additional payment