The Deputy Minister of Finances Christos Staikouras will reveal the government’s 2014 budget proposal in Parliament for discussion. The budget plan includes a 2.8-billion-euro surplus, a deficit less than 3%, reduced expenses and increased taxes.
The final budget plan is expected in November, after negotiations and a new review with the troika representatives. Based on the plan though, primary expenses will shrink by 3.2 billion euros to 41.4 billion euros, while income is expected to increase by 1.5 billion euros to 45.1 billion euros, through various interventions in income and real estate taxation.
The greatest budget cuts, about 2.2 billion euros’ worth, are going to come from social security and healthcare; the government hopes to save about 500 million euros from reductions in wages and pensions.
The primary surplus is expected to be 2.8 billion euros (1.5% GDP), from 300 million euros which is the official estimation for 2013. The recession for 2013 has been estimated at 4% according to the troika, with the 2014 estimations projecting a marginal 0.6% growth rate.
