Ambitious new budget revealed for Greece, tax cuts in 2020

·

Greece is aiming for higher investment and tax cuts to assist with economic growth in 2020 as the country recovers from a decade-long debt crisis.

Greece has revealed an ambitious budget for next year that assumes growth will accelerate to 2.8 per cent from a projected 2.0 per cent this year, driven by higher investment inflows and cuts in corporate and personal income tax.

Theodoros Skylakakis, deputy finance minister, said on Monday the centre-right government was also committed to achieving a 3.5 per cent primary budget surplus next year — before making debt repayments — as agreed with Greece’s international creditors.

The finance ministry plans to boost revenues by raising the percentage of electronic payments required to earn tax breaks and at the same time increase annual taxes on luxury second homes outside big cities.

Investment is projected to rise 13.4 per cent in 2020 compared with an 8.8 per cent increase this year. Private consumption would rise by 1.8 per cent against 0.6 per cent in 2019, according to the budget.

Greece also said on Monday it had hired several international investment banks to reopen its March 2029 debt issue, as it looks to take advantage of a sharp fall in its borrowing costs.

Greece, once the focus of the eurozone debt crisis, returned to the international bond market this year and saw its borrowing costs hit record lows as eurozone government bonds surged.

Greek 10-year government bonds yielded 1.442 per cent on Monday afternoon, down from more than 3 per cent in March.

Source: ANA

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

Step into the world of mental health with Georgia Cassimatis’ latest book

Greek Australian author and journalist, Georgia Cassimatis, has released a book all about exploring the world of mental health.

GOCNSW Welfare Service to put a spotlight on cyber security awareness

The Greek Orthodox Community of NSW’s (GOCNSW) Welfare Service has organised three Cyber Security Awareness education and training workshops.

Marriage of a Greek woman abroad: What to watch out for

It is during this registration process that numerous problems arise, which are not dealt with immediately but later on.

Athena Competition Greek winners show olive oil diversity

By Lisa Radinovsky from Greek Liquid Gold. At the 10th anniversary edition of the ATHENA International Olive Oil Competition in Chania, Crete, Greece in May, 175 Greek olive oils...

Greece’s island communities face population crisis

The demographic decline in Greece is hitting its islands hard, with Lemnos and Agios Efstratios showing alarming signs of aging populations.

You May Also Like

Black smoke rises as first vote fails to elect new pope in Vatican conclave

Black smoke rose from the Sistine Chapel chimney, signalling that the first round of voting by cardinals failed to produce a new Pope.

Turkish Cypriot leader says Cyprus will not be turned into a ‘Greek island’

President of occupied Cyprus, Ersin Tatar, has accused the Greek Cypriot community of attempting to turn Cyprus into a "Greek island"

Gezel Bardossi named ‘One to Watch’ at NSW Women of the Year Awards   

The Greek Italian Australian teenager Gezel Bardossi has been named a recipient of the NSW Women of the Year Awards for 2024. Read more here.