The new measures for 2014

New burdens in real estate, businesses and freelancers - 3.14 billion euros cuts in spending on pensions and social benefits and 443 million in operating expenses - Development at 0.6%, decline in unemployment to 24.5% and 812 million euros primary surplus - Troika has not said its last word

The new budget filed yesterday in Parliament by FinMin Yannis Stournaras will 'dry' the market with additional taxes of 2.48 billion euros in income and property of millions of households, but also new spending cuts of 3.5 billion in 2014. The height of the financial measures is estimated to exceed 6 billion euros.

An additional 540 million euros will be added in this bill that will be collected in 2014 but intended to be counted as revenue in 2013 to ensure the primary surplus of 812 million euros this year.

Specifically, households and businesses will have to pay extra taxes for 2013 until March 2014, including:

-the last dose of corporate income tax in January 2014 of 180 million euros

-collection of the latest installments of real estate taxes of 2011-2013, within the first two months of 2014, at to 180 million euros

-special property tax fee (EETAA 2013) until March 2014, amounting to 180 million euros

The strange thing is that even without these recursive property taxes, the government aims to collect a total of 3,937 billion euros from property taxes, where only 2.65 billion is expected to come from new property taxes. It will try to collect the rest in other ways.

Provisions for tax revenue

According to the draft budget the total state revenue from income tax and legal persons is projected to increase by 11.5% or by 1.33 billion euros, from 11.575 billion in 2013 to 12.908 billion in 2014.

The collection of the State from property taxing is projected to increase by 41.4% or by 1.153 billion euros from 2.784 billion in 2013 to 3.937 billion.

In addition, the Greek government wants to collect 2.8 billion euros from businesses and freelancers in relation to this year.

New cutbacks on spending

The budget for 2014 provides for cutbacks of 3.14 billion euros in spending on pensions and social benefits and 443 million in operating expenses.

Expenditure on salaries of civil servants will be reduced by 280 million euros, while spending on pensions, social allowances and benefits of health and medical treatment by 3.14 billion euros.

Specifically:

-the total amount for salaries and pensions of employees and functionaries of the State is projected to remain unchanged at 17.72 billion euros

-the financing costs of pension funds will be reduced by 3.14 billion euros

-State consumption expenditures will be reduced by 443 million euros or 18.7% and drop to 1,932 billion

Moreover, Greek the government hopes to collect an additional 3.56 billion euros in 2013 from the privatization program.

Forecasts for 2014

According to the introductory report, the primary surplus this year will amount to 812 million euros (0.4% of GDP) and 2.9 billion in 2014 (1.6% of GDP).

The fiscal deficit is estimated at 2.2% of GDP for 2013 (3.9 billion euros) and 2.3% of GDP (4.2 billion) in 2014. The debt is estimated at 175.5% of GDP for 2013 and 174.8% for 2014.

According to the estimates of the economic team, the Greek economy will return to growth in 2014 at a rate of 0.6%, compared to a 4% downturn this year, unemployment will fall to 24.5% in 2014, compared to 25.5% this year and the Greek State will repay its overdue debts of 6.6 billion euros by the end of 2013.