Greek Finance Ministry unveils draft budget 2014

Greek Finance Ministry unveiled the draft Budget 2014 on Monday. In the ambitious draft, Athens predicts recession at 4% from 4.6% originally foreseen. A much better figure when compared to 6.5% of 2012. Deputy finance Minister, Christos Staikouras who presented the draft budget, said that the primary surplus will be at 380 million euro in 2013 and 2.8 billion euro in 2014.

Staikouras gave also the official rate of unemployment at 27% and said that it will drop to 26% in 2014.

“The 2014 budget will also foresee a primary surplus of 2.8 billion euros (1.5 percent of GDP), compared to about 300 million euros this year.

The draft budget might also give a better idea of the fiscal gap that Greece faces next year. The Finance Ministry believes it will be about 600 million euros, whereas the troika expects it to be as much as 3 billion euros.

The final version of the budget is due to be submitted to Parliament at the end of November and could contain a number of changes compared to the draft due to be issued on Monday.” (ekathimerini)

While the government claims that there would be no additional austerity measures, the big question is where the 2.8 billion euro surplus will come from – especially the moment that the government hardly proceeds to expenditure cuts.

A not-so-secret present is being currently wrapped by the technocrats of the Greek finance ministry. With love to the Greek taxpayer: tax hikes to income from rent, tax hikes for free lancers and small enterprises, abolishing tax breaks and stricter taxes for farmers.

As of 1.1.2014 the new taxation system that will go into effect will abolish also the tax free amount of 5,000 euro for annual income.

Nevertheless the budget 2014 has to be approved by the Troika – business as usual….

PS What? the European Union claims as “poor” those with annual income of 7.500 euro? In Greece, they tax also the very poor… Of course. If they don’t cut expenditure, there is no other way than “Taxes and more Taxes”.

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