The increased need to subsidize electricity tariffs is leading to a sharp reduction in budget space of 2 billion euros, estimated to be the result of good tourism and tax revenues, according to Finance Ministry sources.

However, assurances are being given at the political level that there will be room for new aid, even substantial, as the Prime Minister will announce at the TIF on 10 September. Among them, checking the punctuality of vulnerable households seems to be gaining momentum.

The figures given by the technocrats suggest that the amount of new support measures from this year’s budget could be at best 400-700 million euros if electricity subsidies return to the level of the last quarter of 2018. August and are not aged in September. If they remain at September prices, then the margin is almost zero until the target for the primary deficit of 2% of GDP changes.

Budget expenditures on tariff subsidies in September are estimated at 700-800 million euros compared to 250 million euros in August. For the entire year, sources say, the cost is estimated at between 1.6 and 2 billion euros.

So while the additional fiscal space is 2 billion euros, the remaining margin is between zero and 400 million euros. However, the space could eventually be larger, up to 2.3 billion euros, so the margin could increase to 700 million euros. This will depend on GDP (the results of the second quarter will be announced on September 7), tourism revenues and the progress of tax revenues.

Of the measures being developed by finance staff, accurate screening of vulnerable households seems to be gaining momentum.

“The progress of budget execution, tourism and the growth rate of the Greek economy in the second quarter of this year will determine the amount of benefits that will be announced by the Prime Minister at the International Exhibition in Thessaloniki,” said the Minister of Finance. Christos Staikouras, who spoke yesterday with ANT1.

“These three elements will be taken into account to see earnings in the fourth quarter of 2022 and throughout 2023. There will be fiscal space and we will need to see where it will be distributed,” he said.

Regarding the measures, he said that “there are many issues on the table, we have evaluated them all, we have prioritized them, and depending on the margin, there will be appropriate announcements.”

GDP growth rates, according to the finance minister, are moving above estimates and are among the highest, if not the highest, in Europe.