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Benefits under the microscope

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Benefits under the microscope

It is expected that the operation … to get rid of dependence and rationalize the policy of state benefits will be developed after the elections, depending, of course, on the results of the vote. The four years from 2020 to 2023 will end with the largest support package in the country’s history, as more than 55 billion euros is estimated at the expense of measures taken to combat the pandemic, and then the energy and inflationary crisis.

The big “bet” for the next term of office will be placed on clearly less available resources – about 7 billion euros per year – this is a “fixed” social policy budget – to reach those who really need it and use them without fuel for the “black economy”. “.

A significant number of social benefits are already planned to be credited to the cards to limit crediting to bank accounts, and funds from the Recovery Fund will be used to create an extensive database that will provide economic policy makers with information that does not currently exist. : aggregating social benefits per household, i.e. “mapping” society to show how much money ends up going to each family each year through all types of benefits.

From 2024, Greece will be required under the updated Stability Pact to show higher primary surpluses. Rates are not yet “fixed”, but at best it is predicted that the difference between government revenues and related spending should at least cover the interest on servicing the public debt. This means a primary surplus of at least 2–2.3% of GDP, given that the interest is between 4.5 and 5 billion euros.

This is the first problem that will need to be addressed: limited resources for additional emergency benefits. Because although the 2024 budget should be drawn up with the aim of increasing the surplus, at the same time it should also “reverse” the permanent measures taken over the past 3 years, with a total annual cost of about 7.5 billion euros (tax cuts). for individuals and legal entities, the abolition of the solidarity contribution, the reduction of insurance premiums, etc.).

The second problem is related to the fact that over these 4 years state aid has become … a habit. Emergency subsidies for fuel, food, rent, employee wages, electricity bills, fuel oil and natural gas. For every problem that arose during successive crises, an allowance was also planned, bringing the bill over 3 years to the aforementioned 55 billion euros. Citizens will probably have to do without these benefits in the near future, especially if there are no extraordinary reasons (for example, a new unforeseen crisis).

The next government will have far fewer available resources at its disposal.

The third problem is related to the targeting of preferential social policy. For 2023, all types of benefits and allowances provided at the expense of the state budget (including without emergency measures such as market coupons, assistance to pensioners, etc.) will amount to 6.67 billion euros out of 7.6 billion euros in In 2022, in reality, the amounts will exceed 8 billion euros, since only one billion euros is 200-300 euros of pensioners and a market pass).

What the state currently cannot know for sure is how many citizens receive more than one benefit. The legislation does not exclude this. The family will also receive Child Benefit and Disability Benefit, Unemployment Benefit and Housing Benefit if the conditions are met.

The basic condition is the criterion of income, which, however, can no longer be considered reliable due to large-scale tax evasion (it is significant that 40% of taxpayers declare income up to 5,000 euros). “Displaying” benefits will also help to better reflect the real income of each citizen. Because benefits are tax-free, they do not show up on tax returns, making it difficult to allocate total amounts to a VAT number.

The transfer of benefits to cards (modelled on market, fuel and minimum guaranteed income) aims to ensure that public funds of several billion euros annually are not used to finance “black transactions” that do not generate income. least income to the state.

That is, crediting to the recipient’s bank account can be used to pay for “black” and undeclared transactions. Paying by card ensures that redemption is made in organized businesses, leaving an “electronic footprint” and paying at least the relevant VAT.

Author: Thanos Cyros

Source: Kathimerini

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