Revenue rise not enough for handouts

Revenue rise not enough for handouts

Budget revenue continued to overshoot its target in August, so that the primary surplus of the year’s first eight months exceeded forecasts by 3.2 billion euros.

However, the fiscal space has effectively vanished due to the two supplementary budgets to cover the government’s election promises and compensation for the Daniel floods, as well as the measures announced by the prime minister in Thessaloniki, totaling €1.7 billion, which will be paid in the next period.

The supplementary budget that has already been voted foresees additional expenses of €700 million that will be implemented in the near future for the Market Pass, Youth Pass, health expenses, salary of faculty members, cost of local government elections etc. Also, €600 million of the second supplementary budget concerns the first compensation payouts for the flood victims. 

Another €400 million will be spent on the measures announced on Saturday by the PM at the Thessaloniki International Fair, such as the aid to pensioners with a “personal difference,” Market Pass for the affected areas, heating allowance, return of the diesel tax to farmers etc.

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