Projections of the State budget’s draft that will be delivered by the Greek Finance Minister Euclid Tsakalotos to the Parliament’s President on Monday exceed the Memorandum’s demands on the 2017 surplus target.
With the new budget, the Government forecasts a 3,5 billion Euros primary surplus, after the new recovery measures. And even though the new tax measures will cut everyone’s income, Greece must achieve a 2.7% growth rate.
Even if the final budget plan that will be submitted in November to the Parliament is expeted to be revised, the goals set out in the current draft are as follows:
-A primary surplus of 0.6% of GDP (1 billion Euros) for this year, against a target for 0.5 percent
-A primary surplus of 2% of GDP for 2017 (3,5 Billion Euros) against a target for 1.75% (3 billion Euros)
-An economic downturn of 0,3% for this year
-Dynamic growth in 2017 with a 2,7% increase of the GDP
The forecast of dynamic growth in Greece will aid the government argument that it can collect revenue and meet the targets set in the budget. The projections of economic growth, however, could be hampered by the new tax measures of 4,3 billion Euros.