In the “shadow” of the disasters after the Daniel and Elias storms, the draft budget for 2024 will be submitted to the Parliament on Monday (02.10.2023).
According to what has become known, both from Prime Minister Kyriakos Mitsotakis and from the Minister of National Economy and Finance Kostis Hatzidakis, the country will comply with its obligations and thus its fiscal performance will move within the framework of the Stability Program, and this will reflected in the budget.
The basic forecast will be the achievement of a primary surplus of 2.1% of GDP for 2024, while for this year, i.e. 2023, it seems – despite the significant difficulties that arose due to natural disasters – a primary surplus of 0.7% is expected to be recorded.
The draft budget will include interventions for approximately 3 million households totaling 2.5 billion euros. Of these, the increases for civil servants after 14 years, increases for pensioners and the payment of extraordinary and permanent benefits stand out, with the opposition, however, protesting that these are measures – crumbs.
With an eye on the investment grade
Table of Contents
Table of Contents
- 1 What are the key interventions included in Greece’s 2024 budget for households affected by the recent storms?
The government also maintains that it has its eyes on the next two assessments of the Greek economy. One is scheduled for October 20 by S&P Ratings and the second on December 2 by Fitch Ratings. There are reasonable expectations that one of the two, if not both, will give Greece the coveted investment grade rating.
In this context and despite the difficulties that have arisen, the government wants to send a clear message to the markets and investors that it will fully respect its commitments and will not deviate in the slightest
Let’s look in detail at the entire society’s aid program, starting from today and extending until next Spring.
So according to the schedule:
1. Interventions in 2023
-Market Pass: The first payments for the emergency aid to the beneficiaries for the months of August, September and October began already on Friday. The second payment is scheduled for the beginning of November, while those affected in Thessaly and Evros will also receive a benefit for the months of November and December, which will be double.
-Agricultural oil: Farmers will collect the refund of the Excise Duty for 2023.
-Youth Pass: Approximately 200,000 young men and women aged 18 and 19 will receive the allowance of 150 euros.
-Personal difference allowance: 750,000 pensioners of all funds with a personal difference of more than 10 euros will be granted a one-time allowance of 100 to 200 euros depending on the amount of pensionable earnings.
-Minimum guaranteed income: The amount that 225,000 vulnerable households will receive is adjusted by 8%. The new increased amounts will range from 216 to 432 euros.
-Heating allowance: The payment of the aid will start from 100 – 1,000 euros to households that meet the income and property criteria.
2. Interventions in 2024
-Increases for civil servants: After 14 years, 660,000 civil servants will receive from January 1, 2024 increases ranging from an average of 6.5% to 10.5% in basic salaries and allowances of positions of responsibility, while hundreds of thousands of civil servants with children will receive additional increases due to the increase in family allowances. Thus each civil servant will receive an additional 1,292 euros gross or 800 euros net per year. If the abolition of the special solidarity levy, the 1% levy in favor of the Public Employees’ Welfare Fund, the increase in the tax-free allowance for each child and other interventions are taken into account, then the average annual benefit per employee rises to 2,084 euros gross or 1,476 euros net.
-Increases for pensioners: About 1.8 million pensioners without a personal difference or with a personal difference of less than 10 euros will see increases of at least 3% in their monthly earnings.
-Increase of special allowances: For freelancers and farmers the maternity allowance from 4 months will be set to 9 months and at the level of the minimum wage from 150 to 200 euros which is today.
-Increase of the tax-free limit: It increases by 1,000 euros and concerns approximately 1.3 million employees and pensioners with children. The relief on an annual basis ranges from 90 euros to 220 euros depending on the number of children, while the main profession of farmers will also have a corresponding reduction, but this will be seen in the statement they will receive in 2025 after submitting the tax return for their income 2024.
-ENFIA: 10% discount on the 2024 ENFIA, for more than 1 million natural persons who have insured their residence against natural disasters (fire, earthquake, floods).
-Free medicines: The exemption of former E.K.A.S. beneficiaries is made permanent. from their participation in the pharmaceutical expenditure.
-Capital market: The capital raising tax is reduced from 0.5% to 0.2% and the stock market transaction tax by 50%.
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What are the key interventions included in Greece’s 2024 budget for households affected by the recent storms?
Greece’s 2024 Budget: A Comprehensive Guide to Interventions and Economic Recovery
As the country recovers from the devastating effects of the Daniel and Elias storms, the Greek government is set to submit its draft budget for 2024 to the Parliament on Monday, October 2, 2023. The budget aims to address the needs of the affected citizens while ensuring the country’s fiscal performance stays within the framework of the Stability Program.
Primary Surplus and Fiscal Performance
The government expects to achieve a primary surplus of 2.1% of GDP for 2024, following a projected primary surplus of 0.7% for 2023. This fiscal discipline is crucial in demonstrating Greece’s commitment to its obligations and paving the way for an investment-grade rating.
Interventions for 3 Million Households
The draft budget includes a comprehensive package of interventions worth 2.5 billion euros, targeting approximately 3 million households. These measures include:
Increases for civil servants: After 14 years, 660,000 civil servants will receive salary increases ranging from 6.5% to 10.5%, with additional benefits for those with children.
Increases for pensioners: About 1.8 million pensioners will see increases of at least 3% in their monthly earnings.
Extraordinary and permanent benefits: Pensioners will receive one-time allowances of 100 to 200 euros, depending on their pensionable earnings.
Eye on Investment Grade
The Greek government is keenly focused on the upcoming assessments by S&P Ratings and Fitch Ratings on October 20 and December 2, respectively. A potential investment-grade rating would be a significant milestone for the country, demonstrating its commitment to fiscal responsibility and economic stability.
Aid Program Schedule
The aid program will be implemented in two phases:
1. Interventions in 2023
Market Pass: Emergency aid payments for beneficiaries of August, September, and October began on Friday, with a second payment scheduled for November and additional benefits for those affected in Thessaly and Evros.
Agricultural oil: Farmers will receive a refund of the Excise Duty for 2023.
Youth Pass: Approximately 200,000 young men and women aged 18 and 19 will receive a 150-euro allowance.
Personal difference allowance: 750,000 pensioners will receive a one-time allowance of 100 to 200 euros.
Minimum guaranteed income: The amount will be adjusted by 8% for 225,000 vulnerable households, with new increased amounts ranging from 216 to 432 euros.
Heating allowance: Payments of 100 to 1,000 euros will be made to eligible households.
2. Interventions in 2024
Increases for civil servants: Salary increases ranging from 6.5% to 10.5% will be implemented from January 1, 2024.
Increases for pensioners: Pensioners will receive increases of at least 3% in their monthly earnings.
Increase of special allowances: Freelancers and farmers will benefit from an extension of maternity allowance from 4 to 9 months and an increase from 150 to 200 euros.
* Increase of the tax-free limit: The limit will increase by 1,000 euros, benefiting approximately 1.3 million employees and pensioners with children.
The Greek government’s 2024 budget aims to strike a balance between addressing the needs of its citizens and maintaining fiscal discipline. By doing so, the country hopes to send a strong message to the markets and investors, paving the way for a potential investment-grade rating and a brighter economic future.
Keywords: Greece, 2024 budget, primary surplus, fiscal performance, interventions, civil servants, pensioners, investment-grade rating, economic recovery.
Meta Description: Learn about the key features of Greece’s 2024 budget, including the projected primary surplus, interventions for 3 million households, and the government’s commitment to fiscal discipline and economic recovery.
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– How does Greece’s 2024 budget address the needs of households impacted by the recent storms?
Greece’s 2024 Budget: Key Interventions for Households Affected by Recent Storms
In the aftermath of the devastating Daniel and Elias storms, the Greek government is set to submit its draft budget for 2024 to the Parliament on Monday, October 2, 2023. Despite the significant challenges posed by the natural disasters, the government remains committed to meeting its fiscal obligations and achieving a primary surplus of 2.1% of GDP for 2024.
With an Eye on Investment Grade
The government’s budget plans are also influenced by its desire to attain an investment grade rating from major credit rating agencies. With assessments scheduled for October 20 by S&P Ratings and December 2 by Fitch Ratings, the government aims to demonstrate its commitment to fiscal discipline and send a clear message to markets and investors that it will respect its commitments.
Interventions in 2023
The government’s aid program for households affected by the recent storms includes several key interventions in 2023:
Market Pass: Emergency aid payments for beneficiaries will continue until the end of the year, with a second payment scheduled for November.
Agricultural oil: Farmers will receive a refund of the Excise Duty for 2023.
Youth Pass: Approximately 200,000 young people will receive an allowance of 150 euros.
Personal difference allowance: 750,000 pensioners will receive a one-time allowance of 100 to 200 euros.
Minimum guaranteed income: 225,000 vulnerable households will receive an increased amount, ranging from 216 to 432 euros.
Heating allowance: Households meeting income and property criteria will receive aid ranging from 100 to 1,000 euros.
Interventions in 2024
The draft budget for 2024 includes several key interventions:
Increases for civil servants: After 14 years, 660,000 civil servants will receive increases ranging from 6.5% to 10.5% in basic salaries and allowances.
Increases for pensioners: 1.8 million pensioners will see increases of at least 3% in their monthly earnings.
Increase of special allowances: Freelancers and farmers will benefit from an extended maternity allowance and increased tax-free limits.
the government’s aid program aims to support approximately 3 million households, with a total value of 2.5 billion euros. While the opposition has criticized the measures as insufficient, the government remains committed to its fiscal goals and hopes to achieve an investment grade rating in the near future.
What are the key interventions included in Greece’s 2024 budget for households affected by the recent storms?
The key interventions include:
Emergency aid payments for beneficiaries
* Refund of Excise Duty for farmers
