Extra tax takings of €2.5 bln, lower growth in draft budget
First budget draft provides for a growth rate of 2.3% next year, down from 2.6% previously
The pension raises and the adjustment of the minimum salary are expected to add to state revenue in the 2025 budget, combined with the growth of the Greek economy, according to the first draft the National Economy and Finance Ministry submitted on Monday in Parliament. At the same time, the high prices push the collections from both value-added tax and consumption taxes to higher levels, while the takings from tourism are far from negligible.
Forecasts for growth and investment are down compared to estimates six months ago, while public debt is also falling at a slower pace. Nevertheless, the forecasts for the primary surplus are more optimistic, as tax revenues fill state coffers.
The draft foresees a growth rate of 2.2% for this year and 2.3% for 2025. In the Stability Program submitted by the government in April to the European Commission, rates of 2.5% and 2.6% were foreseen, but the government has adjusted to the Brussels’ forecasts.
Overall tax revenue is expected to increase by 2.474 billion euros, or 3.7% compared to 2024. Takings from indirect taxes will amount to €37.798 billion, increased by €1.528 billion compared to 2024. Income tax revenues are estimated to reach €24.941 billion, up by €1.065 billion, of which €878 million is a result of the growing economy and the expected increase in the minimum wage.
The draft budget foresees new permanent support measures amounting to €1.1 billion for 2025, while many other interventions are financed by resources of the Public Investment Program (PIP) and the Recovery and Resilience Fund.
“The new fiscal interventions, complemented by a series of institutional measures, focus on supporting disposable income, strengthening investment and innovation, addressing the demographic and housing issue, as well as addressing the challenges of climate change,” the draft notes.
In total, the main permanent fiscal interventions implemented in 2024, as well as the new ones, which will be implemented from 2025, amount to €2.9 billion.
