Preliminary draft budget and measures worth 3.5 bln euros to be tabled in Parliament on Monday

Greece’s preliminary draft budget for 2022 will be tabled in Parliament on Monday, with measures largely reflecting the announcements made by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair in September.

The total cost of support measures envisioned in the budget for 2021 and 2022 amounts to 3.5 billion euros, of which 2.4 billion euros will be spent in 2022, finance ministry sources said, describing the main features of the budget as “realism and consistency”.

The same sources said that in the case that if economic growth is significantly higher than the forecast for the current year, there may well be an additional support package for vulnerable households. This will be included in the final draft of the budget that is to be tabled in parliament on November 21 and be voted on before the end of the year.

The measures included in the preliminary draft include the lower taxes on parental gifts, lower VAT for tourism, transport, coffee and non-alcoholic beverages, cinemas, gyms and dance schools until June 2022, the lowering of VAT on animal feed to 6 pct, the 50 pct reduction in capital concentration tax and suspension of the payment of subscription television levies until June 2022.

Interventions such as a freeze on the solidarity levy for private-sector workers, lower social insurance contributions and
a lowering of the tax rate for businesses to 22 pct will be extended into 2022.

Apart from the above, the government is taking nine measures to support businesses and households, such as subsidies to offset higher fuel and power prices, help in paying back back assistance received during the pandemic, lower mobile phone taxes, lowering the ENFIA property tax, housing benefit for vocational school students and benefits to boost employment among young people.