In the shadow of Daniel and Elias the draft budget for 2024 is submitted to the Parliament today, Monday, which essentially brings the economy back to normal after four difficult years marked by the pandemico war in Ukraine and the accuracy.
According to what has become known, both from the prime minister Kyriakos Mitsotakisas well as by the Minister of National Economy and Finance Kostis Hatzidakisthe country will fully comply with the obligations and thus its fiscal performance will move within the framework of the Stability Program.
Basic prediction will be the achieving a primary surplus of 2.1% of GDP for 2024while for this yeari.e. 2023, it seems – despite the significant difficulties that have arisen due to natural disasters – it is expected to be recorded primary surplus of 0.7%.
The draft budget will include important liquidity injections to approximately 3 million households totaling 2.5 billion euros. Among them stand out raises for civil servants after 14 years, the increases for the second year in a row to pensioners and of course the payment of extraordinary and permanent allowances.
It should be noted that the government has its eyes on two subsequent assessments of the Greek economy. One is scheduled for October 20 from 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:
Interventions in 2023
Table of Contents
Table of Contents
* 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 Excise Duty for 2023.
* Youth Pass: Around 200,000 young men and women aged 18 and 19 will receive the 150 euro allowance.
* Personal difference allowance: 750,000 pensioners of all funds with a personal difference of more than 10 euros will be granted a one-time payment of an extraordinary 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.
Interventions in 2024
* Increases for civil servants: After 14 years, 660,000 civil servants will receive from 1 January 2024 increases ranging from 6.5% to 10.5% on average in their basic salaries and position of responsibility allowances, 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 in special allowances: For the self-employed and farmers, the maternity allowance from 4 months will be adjusted to 9 months and at the level of the minimum wage from 150 to 200 euros which is today.
* Increase in 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.
* CAMP: 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 fundraising tax is reduced from 0.5% to 0.2% and the stock exchange tax by 50%.
Source: RES-MPE
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What are the key features of Greece’s draft budget for 2024 that signal a return to normalcy?
Greece’s Draft Budget for 2024: A Return to Normalcy After Four Turbulent Years
Introduction
The Greek government has submitted its draft budget for 2024 to the Parliament, marking a significant milestone in the country’s economic recovery. After four difficult years plagued by the COVID-19 pandemic, the war in Ukraine, and inflationary pressures, Greece is poised to return to normalcy. According to Prime Minister Kyriakos Mitsotakis and Minister of National Economy and Finance Kostis Hatzidakis, the country will fully comply with its fiscal obligations, ensuring its fiscal performance aligns with the Stability Program.
Primary Surplus and Fiscal Performance
The draft budget predicts a primary surplus of 2.1% of GDP for 2024, building on the expected primary surplus of 0.7% for 2023. This achievement is significant, considering the challenges posed by natural disasters and global economic uncertainties.
Liquidity Injections and Social Welfare Measures
The government has planned liquidity injections worth approximately 2.5 billion euros to benefit around 3 million households. Key measures include:
Raises for civil servants after 14 years, with increases ranging from 6.5% to 10.5% in basic salaries and position of responsibility allowances.
Increases for pensioners, with a minimum 3% hike in monthly earnings for 1.8 million pensioners.
Payment of extraordinary and permanent allowances, including a one-time payment of 100 to 200 euros to 750,000 pensioners with a personal difference of more than 10 euros.
Adjustments to the minimum guaranteed income, with new amounts ranging from 216 to 432 euros.
Heating allowance payments, starting from 100 to 1,000 euros, to eligible households.
Upcoming Credit Rating Assessments
The government is eyeing two crucial credit rating assessments: one by S&P Ratings on October 20 and another by Fitch Ratings on December 2. There are high expectations that one or both of these assessments will confer an investment-grade rating on Greece, strengthening the country’s economic credibility.
Aid Program Timeline
The government’s aid program will be implemented in two phases:
Interventions in 2023
Market Pass: Emergency aid payments for beneficiaries, with the second payment scheduled for early November.
Agricultural oil: Refund of Excise Duty for farmers.
Youth Pass: 150 euro allowance for 200,000 young men and women aged 18 and 19.
Personal difference allowance: One-time payment of 100 to 200 euros to 750,000 pensioners.
Minimum guaranteed income: Adjustments to the amount received by 225,000 vulnerable households.
Heating allowance: Payments ranging from 100 to 1,000 euros to eligible households.
Interventions in 2024
Increases for civil servants: Raises ranging from 6.5% to 10.5% in basic salaries and position of responsibility allowances.
Increases for pensioners: Minimum 3% hike in monthly earnings for 1.8 million pensioners.
Increase in special allowances: Maternity allowance adjustments for the self-employed and farmers.
* Increase in tax-free limit: Relief on an annual basis ranging from 90 euros to 220 euros for 1.3 million employees and pensioners with children.
The Greek government’s draft budget for 2024 sends a clear message to the markets and investors: Greece is committed to respecting its fiscal obligations and restoring economic stability. As the country emerges from the shadows of Daniel and Elias, it is poised to reclaim its economic momentum and build a brighter future for its citizens.
What are the key components of Greece’s draft budget for 2024 and how do they aim to restore economic normalcy?
Greece’s Draft Budget for 2024: A Return to Normalcy After Four Challenging Years
After four difficult years marked by the pandemic, war in Ukraine, and accuracy, Greece is taking a significant step towards recovering its economy. Today, Monday, the draft budget for 2024 will be submitted to the Parliament, aiming to bring the economy back to normal. According to Prime Minister Kyriakos Mitsotakis and Minister of National Economy and Finance Kostis Hatzidakis, the country will fully comply with its obligations, ensuring its fiscal performance moves within the framework of the Stability Program.
Primary Surplus and Liquidity Injections
The draft budget predicts a primary surplus of 2.1% of GDP for 2024, while for 2023, it is expected to record a primary surplus of 0.7%. The budget will also include significant liquidity injections to approximately 3 million households, totaling 2.5 billion euros. These injections will include raises for civil servants after 14 years, increases for pensioners, and payment of extraordinary and permanent allowances.
Government’s Commitment and Credit Rating
The government has its eyes on two subsequent assessments of the Greek economy, scheduled for October 20 from S&P Ratings and December 2 from 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, 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.
Aid Program for 2023 and 2024
Let’s take a closer look at the entire society’s aid program, starting from today and extending until next Spring.
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 Excise Duty for 2023.
Youth Pass: Around 200,000 young men and women aged 18 and 19 will receive the 150 euro allowance.
Personal difference allowance: 750,000 pensioners of all funds with a personal difference of more than 10 euros will be granted a one-time payment of an extraordinary 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.
Interventions in 2024
* Increases for civil servants: After 14 years, 660,000 civil servants will
