600-million curtailments in Greece’s Public Investmenets

600-million curtailments in Greece’s Public Investmenets

Greece’s Public Investment Program’s expenditures will be cut by € 600 million this year, while the program will “freeze” next year. Specifically, for the following year, the PIP budget remains the same as the medium-term program approved by the previous government in both expenditure (6.750 billion) and revenue (4.1 billion).

Surplus

However, for this year there is an “estimate” for a reduction! The preliminary draft estimates that the PIP expenditures will be significantly trimmed down by 600 million or 6,150 billion, against the amount of 6,750 that the 2019 budget provides. Accordingly, it is estimated that PIP’s revenues will reach 3,724 billion against the projected budget of 4,042 billion. Long story short, the PIP fiscal outcome for 2019 will be more favorable to the surplus by 300 million compared to the target! The government cuts the Public Investment Program by € 600m for 2019, ending up spending less on public investment than what was spent during SYRIZA’s governance in 2018.

Solid start, yet …

All this, despite the fact that the results of the first half of 2019 under the SYRIZA government were particularly encouraging and appeared increased by 500 million compared to the first half of 2018! Hypocrisy. Therefore, this constitutes one more case of the government failing to meet the expectations it had raised during the pre-election period regarding investments and development. The impact will be evident both on the payments to the private sector as well as on the financing of the wider public sector, and in particular the municipalities and the regions. This should be also regarded as major hypocrisy, since as long as New Democracy served as the main opposition it falsely accused SYRIZA of slashing PIP and of reduced absorption of NSRF resources. /ibna