Gov’t tables draft state budget

Gov’t tables draft state budget

Athens, October 6, 2015/Independent Balkan News Agency

By Spiros Sideris

Depression 2.3% this year and drop of the real GDP by 1.3% in 2016 sees the Treasury according to forecasts incorporated in the draft state budget for 2016, which was tabled in parliament on Monday by Greek Fin Min Euclid Tsakalotos.

In the fiscal field, this year, as provided for in the Memorandum, is expected a primary deficit of 0.24% of GDP while in 2016 the expectation is for a primary surplus of 0.52% of GDP.

According to the recommendation of the finance minister, employment is expected to decrease by 1.6% this year and 1% in 2016, while unemployment is expected to increase from 25.4% in 2015 to 25.8% in 2016.

The finance ministry also predicts that private consumption will decline this year by 1.6% and 2.4% in 2016. Government consumption will also follow a downward trend (-1.2% this year and 2.1% next year) .

The harmonized consumer price index is expected to be -0.5% in 2015, reaching 1.3% next year.

Also, direct taxes are projected to rise to EUR 19,926 million. In this revenue is included EUR 957 million, from the collection in the first months of 2016 of the two installments of ENFIA for 2015.

Indirect taxes are expected to stand at EUR 24.874 million.

Revenues from privatisations are projected at EUR 2 bn.

However, the finance ministry warns that “obviously, these estimates may be revised with the publication of more figures for 2015, which will allow providing a clearer picture of the impact of capital controls and fiscal measures on the real economy”.