Government is split over budget surplus

Government is split over budget surplus

“We will be gradually announcing the good news, as long as we attain the fiscal space,” Prime Minister Kyriakos Mitsotakis told his cabinet on Thursday, paving the way for a compromise solution to the problem of the social dividend.

The issue has split the government, which must balance out handouts with the achievement of the primary surplus target.

This year’s projected primary surplus overrun of 436 million euros (according to the 2020 budget) has been the subject of various announcements, with the Finance Ministry repeatedly trying to ease expectations.

Government spokesman Stelios Petsas told Skai Radio on Thursday that the handout will be given to the most vulnerable, as well as those who have been overtaxed in recent years (implying a tax break).

However, a Finance Ministry source refuted that, saying, “There is no scope for any further tax breaks.”

Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.