The draft budget currently tabled in parliament does not include a reduction in tax rates. It does, however, include a 1 billion euro increase in revenues. It also foresees a reduction in unemployment rates and sets the primary surplus at 2.9% of GDP.
A 30% reduction in heating oil taxation, the reduction of the 2015 solidarity tax in 2015 by 30% and the adjustment of arrears in installments are also included in the draft state budget presented earlier today by Deputy Minister of Finance Christos Staikouras.
The primary surplus is finally set at 2.9% – very close to the target of 3% required in the Memorandum of Understanding with the troika of international lenders. Budget figures are currently based on the premise that 2015 will see a GDP growth of 2.6%
The budget also provides a 1.7 billion euro increase in tax revenues, as it is estimated that approximately 800 million euros from each installment of the 2015 ENFIA tax will form part of the 2014 budget. Moreover, the new budget provides for a net increase of one billion euros from direct revenues. More specifically:
1) Revenues from direct taxes are expected to reach 22,144 billion euros (from 21,339 billion euros in 2014).
2) Revenues from indirect taxes are estimated to hit 25,242 billion euros (from 24,312 billion euros in 2014).
The draft budget also forecasts a significant reduction in unemployment from 2014 to 2015 – from 24.5% to 22.5%.
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