Fiscal space, which was created mainly by higher-than-expected revenues over the past few months, has finally been made available to fund the measures announced yesterday by the prime minister and specialized yesterday by financial staff, mainly for pensions and the extension of the reduced rate VAT on transport and coffee until the end of the year.

The budget target for a primary surplus of 0.7% of GDP this year remains unchanged, while if no measures were taken, the primary surplus could reach 1% of GDP, a source at the economic headquarters said. Which would mean faster debt reduction.

The budget target for a primary surplus of 0.7% of GDP this year remains unchanged.

The fiscal cost of the measures is €800 million, of which Deputy Finance Minister Theodoros Skilakakis said €650 million is net incremental costs, with the remaining €150 million already budgeted. According to the information, what has been envisaged concerns part of the allowance for hazardous and unhealthy work and the payment of unpaid agricultural compensation in the amount of 120 million euros, which will be paid from the reserve. According to Mr. Skilakakis, the additional 650 million spending will come from additional fiscal space created by the following developments: upward side. . 2. Gas prices, which appear to be stabilizing at a much lower level than those projected in the budget, reducing the need for government subsidies for households and businesses, as well as government energy costs. 3. Budget revenues, taxes and insurance premiums, and more generally the course of the financial result in 2022, as a result of which there will be a carried over fiscal space in 2023.

Mr Skylakakis cited general government fiscal data showing a budget deficit of just $288 million in 2022. Which analysts estimate means the budget deficit is possibly $1.2 billion below forecast. The Ministry of Finance indicates that only the part that concerns the excess of income is the transferable budget space until 2023, which is 650 million euros.

However, Mr. Skilakakis said yesterday that “the fiscal space that could arise during the year has not yet been exhausted” and that “we prefer to have a reserve in case of unforeseen circumstances.”