10-day deadline to cut 11.6 billion

The plan for the cutting of 11.6 billion in expenditure by 2016, which is being drafted today by the general secretaries of all ministries, provides for the establishment of strict income and social criteria for receiving social security benefits.

 

The aim is to select the most painless cuts that will not pose an immediate danger to the weaker sections of society, the basic functions of the State or national security.

 

They will seek "areas" and budget codes of each ministry where they can cut funds within the available 10 days that the government has until the Troika returns on July 24.

 

The Troika technical teams that are in our country have identified that in recent years every kind of social benefits by Funds and Agencies (excluding pensions) have significantly increased. Thus, they are pressing so that benefits are reduced to the levels which existed before our entrance in the euro.

 

According to the Troika envoys, not only have these benefits been unevenly distributed until today, but they also aim at the wrong target (e.g. 60% of family benefits end up in the pockets of the 40% of the population with the highest incomes).

 

As a counterweight, and to avoid reducing special wage payrolls, the government has already sent the Troika a proposal for additional reduction of 10% - 20% in the operating expenses of ministries. Especially for the military, the proposal is that the 40 million euros needed this year and the 120 million for next year come by transfer payments and reviewing armament contracts.

 

The new three-year mid-term program is for 2013-2016, and some of the measures that will be considered are the following:

 

- review of social programs

-  elimination of all social programs and establishment of a single one, which will be given only to the very poor

-  replacement of the unemployment benefit with a "work benefit", i.e. subsidizing of companies to hire a person instead of the unemployed themselves

- cutting of government spending in unproductive sectors with low added value to the economy, to strengthen incentives for private sector development and revitalization of the local and national economy.