Who benefits
On April 22, Eurostat is expected to make its final estimates of the amount of Greece’s primary surplus in 2024.
This is the crucial element on the basis of which a first, except clearer, picture of last year’s budget performance and the budgetary space that can be used for new tax breaks that the government has announced. The next milestone will be June when estimates of the amount of revenue from the arrest of tax evasion this year will be finalized. The combination of these two parameters will result in the outcome of the budgetary margins that the government will eventually have in order to lock the package of new positive measures announced by Prime Minister Kyriakos Mitsotakis in September at the TIF.
Already the data available to the government’s financial staff show that for another year, in 2024, the target for the primary surplus of the state budget was significantly overcome. Instead of 2.5% of GDP that was the original target, it was 3.5%, a development that automatically creates additional fiscal space compared to previous estimates by the finance ministry.
The first calculations raise the amount of the budgetary margin of up to € 2 billion. If these estimates are verified from the data announced by Eurostat, these will form the basis for discussions between the Ministry of Finance and the Commission on the scope of new taxation. These consultations are expected to be completed in June after taking into account additional tax evasion revenue this year, which amounted to 2 billion euros last year, but also another factor that remains unknown X. This is the financial margin for Greece. On the basis of these parameters and after taking into account the roof on the annual basis of public expenditure provided for by Greece’s 4 -year budgetary framework, the final amount of the fiscal space will arise.
The taxpayers that focus on the consistent middle -class taxpayers but will also concern wider taxpayers will be the key package of the new positive measures to be announced by the government. These will include changes in the tax scale with rate adjustments so that it benefits up to € 50,000. Changes in living presumptions as well as taxation taxation have been examined, the RES EIA broadcast.
There are also targeted aid in categories of citizens who are deemed necessary. Announcements on the increase in the minimum wage that supports and pay in the public and the announcements of the Ministry of National Defense on the military has opened the debate on increases and security forces (Police, Port, Fire Brigade).
The prime minister in the debate in Parliament on the country’s equipment program announced that the government would exhaust any budgetary margins and that its final decisions would be announced in September at the TIF. From the same step, however, he stated that the government is not going to exaggerate decisions that would endanger the country’s fiscal stability.
