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2020 state budget revenue and spending up; draft tabled in Parliament

Featured 2020 state budget revenue and spending up; draft tabled in Parliament

The Greek government on Thursday tabled the 2020 draft budget in Parliament which envisages a GDP growth rate of 2.8 pct and a primary surplus of 3.6 pct in 2020, exceeding a target for a 3.5 pct primary surplus and putting the Greek economy on track for stronger growth.

It also envisages a further decline in unemployment to 15.6 pct of the workforce next year, from 17.4 pct in 2019. It sees a 2.0 pct growth rate in the current year and a primary surplus of 3.7 pct of GDP, offering the government a fiscal space of 436 million euros.

Net revenue (after tax returns) is estimated to total 54.710 billion euros, up 448 million or 0.8 pct from 2019 estimates, with tax revenue projected to rise to 52.165 billion euros from 51.392 billion in 2019.

Income tax revenues are estimated to rise to 11.415 billion euros in 2020 from 11.092 billion in 2019, while corporate tax income is projected to fall to 4.017 billion from 4.463 billion euros.

Tax on goods and services are estimated to bring 28.557 billion euros in proceeds in 2020, up 2.3 pct from 2019, with VAT revenue up 475 million euros to 18.276 billion and consumption taxes rising 89 million to 7.214 billion euros. Revenue from tax on imports are estimated at 322 million euros, up 18 million from 2019, while revenue from property taxes are estimated to reach 2.829 billion euros, up 84 million from 2019. Other production taxes are estimated at 1.130 billion euros, up 91 million, while income taxes are projected at 16.663 billion euros, down 0.6 pct from 2019 estimates.

Budget spending is estimated at 57.163 billion euros, up 772 million from 2019 estimates. Primary spending is projected to rise by 1.722 billion euros to 51.163 billion. More specifically, spending on workers’ benefits are estimated at 13.390 billion euros, up 389 million from 2019 estimates, social benefits are projected at 134 million euros, down 126 million from 2019 estimates, spending on transfers to agencies inside and outside the general government are projected at 27.844 billion euros, spending on the purchase of goods and services are estimated to fall by 486 million euros to 968 million euros, while subsidies are projected to fall to 89 million euros, down 136 million from 2019 estimates.

Spending on interest are projected at 6.0 billion euros, down 500 million from 2019 estimates.