The government is reducing spending on the social protection of the weaker social groups, despite the assurances of Euclid Tsakalotos that taxes go to finance the government's social policy, while increasing the contributions paid by employers and professionals. This will result in the much-touted, by the government, budget surplus for 2018.
At the same time, however, the draft budget provides for a new "gift" for civil servants of € 371 million.
In particular, social spending will be reduced by 7.6%, while the income from insurance fund contributions will increase by 2.7%.
In other words, in the opposite direction to the losses suffered by the socially weak due to the cuts in health care costs, as well as employers and professionals - who will pay more contributions in 2018 - the costs of contributions and wages to the State will increase by 3%.
Specificallyl, expenditure on insurance, health care and social protection in 2018 will be reduced by € 1.6 billion compared to 2017. Social policy funding will be € 19.4 billion in 2018, from € 21 billion in 2017.
Pension fund receipts are projected to increase by € 368 million, through the insurance contributions paid by employers, self-employed professional and farmers in 2018, as compared to 2017, increasing the insurance burden of these social groups.
In particular, revenue from contributions is expected to reach € 13.1 billion in 2018, compared with € 12.7 billion in 2017.
However, public funds for civil servants will be increased, as payments and pensions are projected to rise to € 12.2 billion, up by € 371 million compared to 2017.
This increase expected in 2018 due to:
- the increased employer contributions of the State as an employer in favor of the social security fund,
- the reform of special wages,
- the continuing decline in the number of retirements.
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