By Penelope Galliou

With the government ready to step on it “increase button”, the time is now counting down for the increase in the incomes of public – more – and private – less – employees, while all citizens will see a financial benefit in their dealings with the state. For the government, as it has been formulated by the prime minister himself but also by all top government officials, 2024 is a year of income increases and the implementation of a meaningful social policy that will have an impact on society as a whole and will be constantly improving.

After fourteen years civil servants will see their salaries increase, around 1500 euros per year on average, while minimum wage workers will also get a raise, as will private sector workers who have completed three years of service for the first time in 12 years. Pensioners will see new increases, for the second time, to around 3%, and it comes to be added to the 7.5% of the previous year, as well as those entitled to disability and social solidarity benefits and all families with children who will see their tax-free to increase.

In addition to the above, among the measures that will begin to be implemented from January 2024 and will “stimulate” citizens’ income are the increase of the minimum guaranteed income, the reduction of the ENFIA for homes insured against natural disasters, the exemption of the former beneficiaries of EKAS from their participation in the drug market, the youth pass, totaling 1.6 billion euros per year.

Permanent increases in income, according to government officials, are also the most effective response to inflation and inflation, considering that it “gives citizens a breather in relation to the significant and painful increases in goods and services”. In addition to these measures that will start to be implemented from the new year, respectively there is a significant relief of incomes from more than 50 permanent reductions in taxes and social security contributions, which “gives an additional disposable, real income to every household, every family and every employee” they note.

According to the Maximos Palace and the financial staff of the government throughout the previous period they had made it clear that any benefits, increases and improvements in citizens’ finances would not at all endanger the fiscal stability of the country, since as they emphasized “Greece follows a fiscally responsible and serious policy”. In this context, the country has already achieved a primary surplus target of over 1% for 2023, while the target for 2024 is 2.1%. Greece as a whole since the pandemic has achieved one of the largest fiscal adjustments among all European countries with the fastest reduction of public debt internationally – although of course it still remains at high levels. This is characterized by government officials as a “significant achievement”, referring to the fact that the expenses that were necessary during the pandemic and the energy crisis have been “collected”, while the tax policy adopted in the last four years has reduce the tax burden of households, workers and businesses by almost 5.5 – 6 billion euros permanently.

Revenues in 2023 are 61.5 billion euros, although taxes compared to 2019 – which were 51.5 billion euros – were reduced by 6 billion euros. That is, having reduced taxes and contributions by 6 billion, public revenues increased by 10 billion euros. “More reasonable taxes bring greater growth, less inequality, higher disposable income, more revenue to public coffers” commented the Minister of State Akis Skertsos in an interview. He also focused on the government’s goal for “tax compliance”, stating that “we are lagging behind in these indicators, there is still more tax evasion in our country than in the rest of Europe. With the law now, of the Ministry of Finance, 11 policy measures are aimed at limiting tax evasion”. As he said, in fact, with the money from the crackdown on tax evasion, public education and public health will be further supported.