Budget 2025: Support for the poor is at the forefront

The government's economic apparatus will begin work in the final stages of finalizing the 2025 budget in the next few days.

The meetings will begin to make decisions that will reflect the government's key priorities in economic policy. These are decisions in key areas of the economy that will be dictated by the government's key political and economic priorities, including:

• support for economically vulnerable segments of the population,
• the need to maintain budgetary discipline as provided for by the new budget rules EU,
• continuation of the policy of reducing taxes and solving everyday problems.

Thus new budget will be an attempt to balance between the obligation to comply with new rules setting a 3% limit on primary spending growth in 2025 and the need to continue the policy of supporting vulnerable groups of the population, which the government has already announced along with further reduction of the tax burden.

The main announcements on economic policy for 2025 are expected to be made by Prime Minister Kyriakos Mitsotakis at the ΔΕΘ forum in early September. In any case, however, the government said that they will not be characterized by the logic of benefits, they will be balanced based on the potential of the economy and the needs of society.

The Ministry of Finance has already stated that At the end of the year, additional benefits will be paid to pensionerswho do not receive annual allowances (due to personal differences, προσωπικής διαφοράς). In this context, given positive budget rate for the current yearit is proposed to consider the possibility support other vulnerable groups.

There are also proposals to extend the social security tax cuts that have been announced, which envisage a 0.5% cut in 2025 and 0.5% in 2027. The fiscal targets of the new budget will be aligned with the forecasts of the stability and growth program for 2024-2025. The primary surplus for 2025 and beyond is projected to be 2.1% of GDP. This is a condition for further reduction of the public debt, which is expected to fall to 143% of GDP this year.

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