Fin. Min: Support measures will exceed 10 billion euros for 2022
New support measures for households and businesses – What the Greek Finance Minister stated on heating allowance and business tax
The financial support to households and businesses this year will significantly exceed 10 billion euros, compared to the initial estimates of 8.5 billion euros. The Greek Finance Minister, Mr Christos Staikouras said, adding that a part of this support will come from the budget and an even larger part will come from the Energy Transition Fund.
Speaking to Alpha 98.9 radio station, the minister appeared particularly cautious, noting that “we have to be very careful in achieving our fiscal targets (a 2% GDP primary deficit this year and a primary surplus in 2023), because the markets are thoroughly assessing it.”
He added that “after taking seriously into consideration the sources available, we proceed with our choices (of support measures). There is limited fiscal space and high uncertainty.”
The fiscal space
According to Mr Staikouras, the initial fiscal space was used up, due to electricity subsidies, Fuel pass-2 and the financial support we offered to farmers. The new additional fiscal space will depend on the announcements of the Hellenic Statistical Authority on Q2 GDP,on budget and on tourism revenues, he added, among other things.
According to the Athens Macedonian News Agency, Mr Staikouras noted that gas and electricity price trends in the coming months should also be considered, as the more the resources for support measures, the more they are constrained by other options.
However, he said that pension increases and the abolition of the solidarity levy for civil servants and pensioners are considered permanent measures from 2023 onwards.
The heating allowance
Concerning the heating allowance (its increase and expanding the number of beneficiaries), he referred to the Prime Minister’s announcements at the TIF, saying that “the heating allowance is one of the measures evaluated in the existing or the new additional fiscal space”. He also referred to the Prime Minister’s announcements on the possibility of a reduction in the business tax.
As ot.gr has already written, there will be an at least 20% increase in the amount of money to be allocated this year for heating allowance compared to last year. Moreover, at the same time, the number of beneficiaries will also be expanded by increasing the income limits in the range of 40,000 to 45,000 euros, depending on the number of family members, as already happens with fuel pass.
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