The European Commission and the Hellenic Statistical Authority (ELSTAT) are expected to ratify the final data on the course of the 2024 budget execution (primary surplus, public debt) on April 22, with the Greek side also proceeding with the first estimates for the course of this year’s budget.
In early March, ELSTAT will publish the data on the course of the growth rate in the last quarter of 2024 and consequently for the entire previous year.
The above data are also expected to provide a first estimate of the scope of the government’s interventions, especially in the area of reducing direct taxes. However, the economic staff will wait a few more months in order to form a better picture of the course of the budget execution, with the Prime Minister expected to announce direct tax reductions at the TIF in September. Reductions which, according to the Minister of National Economy and Finance, will concern the incomes of 2025 and will be declared in the tax returns of 2026.
Economy and Finance Minister Kostis Hatzidakis in recent statements ruled out:
- the reinstatement of the 13th and 14th salaries to public sector employees and pensioners, horizontal payment of retroactive payments to pensioners and
- an extraordinary allowance to vulnerable social groups at Easter.
The Minister of National Economy and Finance explained that these would burden the budget with 8 billion euros, a cost that would lead to fiscal derailment.
The government has already launched wage increases in both the public and private sectors as a new increase in the minimum wage is expected as of April. At the same time, the salaries of public employees will increase as they will be linked to the minimum wage. Also, from July 1, the monthly “special working conditions and risk allowance” received by members of the Armed Forces and Security Forces will be increased by 100 euros per month for everyone, regardless of rank.
