Extra spending to reach 3.5 billion euros next year
Minister of National Economy and Finance Kostis Hatzidakis presented on Monday morning the details of the measures Prime Minister Kyriakos Mitsotakis had referred to on Saturday at the Thessaloniki International Fair, noting that the increase in primary budget expenses may reach 3.5 billion euros instead of €3 billion previously planned.
As the minister explained, there are several factors that will increase the income of Greeks, starting from the new pension increase by 2-2.5% from January 1, 2025, plus the extraordinary financial support for pensioners with personal difference (€100 million)
Another €100 million or more will go for the horizontal increase in public sector salaries, leveling up the introductory salary with the minimum one.
Hatzidakis also confirmed the expansion of the goal achievement allowance in the state (€40 million), the increase in student housing allowance (€1,500 – €2,500), a 20% increase in the nightly compensation of uniformed officers (€25 million), the €16 million incentive to attract doctors, an additional installment to the beneficiaries of the child allowance worth (€70 million).
The minister further mentioned the increase of the disability allowance, support for disabled beneficiaries of the OPEKA allowance, plus the payment of €200 to uninsured senior citizens and of 50% of the Minimum Guaranteed Income to its beneficiaries.
Hatzidakis went on to speak in detail about the upcoming tax breaks. He made special reference to the reduction by one percentage point of social security contributions (€440 million), saying that “we are closing in on the EU average in terms of non-salary costs that has a competitiveness dimension.”
He then referred to the abolition of fee for practicing a profession (“telos epitidevmatos”), the permanence of the tax return for oil farmers use, the income tax exemption for vacant properties, the Value-Added Tax exemption for new buildings, the abolition of the landline telephony fee, the 15% premium tax exemption on health policies for children, the tax exemption of voluntary services in favor of new parents, the 20% ENFIA reduction for homes insured against natural disasters, the independent taxation of National Health Service on-calls at a rate of 22%.
Hatzidakis finally referred to incentives for innovation and mergers and to the reduction of stamp duties.
“It was clear from the position of Kyriakos Mitsotakis that, as required and as always done, the economic policy of the government is being updated, keeping the same general direction by combining fiscal seriousness with a pro-investment approach, which is also the foundation for the economy to move forward,” stressed the minister.
“We consistently continue to exceed fiscal targets. We have increased funds for public investment. An increase in tax revenue, without an increase in taxes,” he also noted.
