ATHENS: Greek government prepared draft budget 2017 with 2% surplus, which exceeds the requirement by the program for economic stabilization and considers recovery of the faster pace. Moreover, the Greece’s Finance Ministry expected over-achievement for the budget surplus this year.
The country’s economy recorded growth of 2.7% next year, while the preliminary estimates were for a contraction of the Greek economy within 0.3% in 2016, but expectations of Athens, the drop can be minimized. The budget for 2017 is set and reduce the public debt to 176.5% of gross domestic product (GDP), compared to 180.3% this year. However, in absolute numbers there will be growth from 315.4 billion EUR to 319.2 billion EUR.
The expectations of the Finance Ministry are for additional tax revenue of 2.5 billion EUR. These funds will come from more revenue from income taxes and an increase in excise duties on cigarettes, petrol, coffee and internet.
The purpose of the financial framework for the next year is to maintain fiscal balance and the return of market confidence in Greece’s economy. In this way, the country can emerge from the rescue programs as soon as possible.
The budget provides for some social policies, including the allocation of 300 million EUR to improve the quality of education, health and social protection, as well as 760 million EUR for social solidarity, which will be supported 250,000 households living in poverty.
The debate on proposals from the Treasury budget starting in parliamentary committees this week. Budget 2017 enters the plenary in early December. It is expected that the document will be accepted until midnight on December 10.
