At the same time, government spending will increase, emphasizing the support of vulnerable groups, through housing, demographic and income support measures. The 2025 budget foresees additional support measures of €2.94 billion compared to 2024.
All this is included in the draft budget submitted to Parliament last Monday. An important element highlighted in the draft is the effect of geopolitical developments, which may negatively affect the achievement of the objectives of the Ministry of National Economy and Finance.
In the unfavorable scenario for Greece, the instability factors may arise from a negative international economic environment, the increase in oil and natural gas prices, as well as a possible decrease in tourism demand.
Despite the challenges, the Ministry of National Economy and Finance estimates that it will collect an additional €2.47 billion in tax revenue in 2025, increasing total tax revenue to €68.7 billion, up from €66.24 billion in 2024. i.e. an increase of 3.7%.
According to the draft state budget for 2025, this increase will come from both expected economic growth and a reduction in tax evasion, which will be boosted by the increase in electronic transactions.
By 2027, anti-avoidance revenue is expected to range from €2 to €2.5 billion per year, with the aim of reducing the VAT gap to 9% by 2026.
The Revenue
The net revenues of the state budget for 2025 are forecast to reach 74.612 billion euros, increased by 3.824 billion euros or 5.4% compared to 2024. In detail, the revenues from taxes are structured as follows:
* Income tax: Expected to reach €24.941 billion, up €1.065 billion or 4.5%. Personal income tax will reach 15.052 billion euros, up by 878 million euros, due to the growth of the economy and the increase in the minimum wage. Corporate income tax will reach 7.972 billion euros, increased by 180 million euros.
* Regular real estate taxes: Expected to fall to €2.395 billion, due to the 20% reduction in ENFIA for those who insure their residence.
* Taxes on goods and services: Expected to reach 37.798 billion euros, up by 1.528 billion euros (4.2%). Of these, VAT revenues are expected to reach 26.508 billion euros, up by 1.254 billion euros.
The draft of the 2025 state budget includes measures to support incomes, address the housing and demographic problem, totaling 2.94 billion euros. Specifically, the total fiscal cost of interventions for 2025 is expected to increase by 1.104 billion euros compared to 2024, reaching 2.944 billion euros. Of these, 628 million euros concern interventions on the revenue side, with 1.112 billion euros coming from revenue reductions and 484 million euros from increases. In addition, significant interventions amounting to 2.316 billion euros will be made on the expenditure side.
The expenses
For 2025, the total expenditure of the state budget is projected to be 80.562 billion euros, increased by 4.344 billion euros in relation to 2024. This increase is mainly attributed to the acceleration of the projects of the Recovery and Resilience Fund (RAF), in receipt of weapon systems from the Ministry of National Defence, to cover the loss of income of the EOPYY due to the reduction of insurance contributions, to increase the salaries of civil servants and to strengthen the hospitals of the ESY.
For 2024, total state budget spending is expected to reach €76.218 billion, up €1.586 billion from the budget target. Expenditure on employee benefits will reach €404 million, up €36 million on 2024. In addition, €250 million is expected to be spent on the heating allowance.
Expenditures for transfers to agencies, both within and outside the General Government, are expected to reach 34.203 billion euros, increased by 1.124 billion euros compared to 2024. This increase is mainly due to the strengthening of the EOPYY with 525 million euros, to cover the loss of revenue from the reduction of insurance contributions in the health sector, as well as to support the NHS hospitals.
Lalos – Lampropoulou: The next step they took in their relationship!
Time change: When do we turn the hands of the clock?
ECB: A new interest rate cut is expected next Thursday 10/17
#Growth #curbing #tax #evasion #wage #increases #pensions #bring #billion #taxes
