The new budget submitted in parliament on Tuesday projects growth of 1.6% this year and 2.5% in 2018, while unemployment is expected to drop from 19.9% this year to 18.4% next year, while there will be 2.1 billion euros in government spending cuts.
The budget predicts new taxes amounting to one billion euros (more than the 900 million earmarked by the old Hardouvelis e-mail) for 2018 and a growth rate of 2.5%.
Under the new conditions, the government expects a primary surplus of 7,051 billion. or 3.8% of GDP (under the program’s rules), or almost 600 million more than required by the Memorandum, which for 2018 predicts a primary surplus of 3.5% or 6.44 billion euros. The 2018 budget predicts growth of 1.6% this year and 2.5% in 2018, while unemployment is expected to decline from 19.9% this year to 18.4% in 2018. In particular, the budget foresees that in 2018:
– 2.1 billion additional government revenues will be collected compared to the current year. They will reach a total of 54,244 billion euros, compared to 52,142 which are estimated for 2017. This includes revenues of EUR 1.1 billion from privatizations in 2018.
– 951 million more will be collected via taxes. For 2018, total revenue from direct and indirect taxes will amount to 48.156 billion euros, compared to 47.205 estimates for this year.
– Government spending is also cut by €2.1 billion (equal to tax raises). From 57.265 billion this year, government spending will drop to 55.188 billion euros.
Direct taxes are projected to reach €20.766 billion, up by €478 million compared to 2017. The personal income tax is projected to rise to €8.725 billion, up by €456 million compared to 2017, mainly due to taxation of short-term leasing of property, abolition of deduction in medical expenses and the deduction of 1.5% in the withholding tax, as well as the abolition of 25% of the tax-free allowance for judicial officers and MPs.