ECONOMY

Midterm plan with two scenarios

midterm-plan-with-two-scenarios

The countdown has started for the drafting of the 2021-24 midterm fiscal plan, with interest focusing on the new tax breaks it will include, which will depend on whether or not the primary budget surplus target is brought down. It will therefore include two scenarios, one with a target of 3.5 percent of gross domestic product for 2021 and 2022 and another with a reduced target.

Deputy Finance Minister Theodoros Skylakakis on Tuesday issued a circular for the drafting of the plan, issuing guidelines for just one scenario, “without any additional interventions and new policies beyond those already introduced to date.” This does not rule out an alternative scenario that may come later on with additional interventions that could be implemented depending on government demands for extra fiscal space.

For the time being, Skylakakis is reminding state and general government entities – as they need to calculate their revenues and spending up to 2024 – that, “as a baseline scenario, the country has pledged for the realization of specific fiscal targets for the period 2021-24, which in the context of the enhanced surveillance provide for achieving primary surpluses of 3.5 percent of GDP at the general government level until 2022.”