“There is no fiscal gap for 2020 and this will be shown in the draft budget to be submitted to Parliament on Monday,” Finance Minister Christos Staikouras said in an interview with “Εleftheros Typos” newspaper on Sunday.
Staikouras’ assurance comes after the country’s lenders have estimated a fiscal gap of some 800 million euros based on a series of tax relief measures as announced by Prime Minister Kyriakos Mitsotakis during the International Fair of Thessaloniki beginning of September.
According to the finance ministry, the budget will also incorporate the 1.2 billion euros (net 1 billion euros) of tax exemptions announced in Thessaloniki.
Staikouras stressed also that “all measures (tax reliefs) announced by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair (TIF) will be included in the budget”, while in the medium term the government will proceed “with even greater direct and indirect tax cuts.”
Among others, the draft budget will include also public expenditure cuts, while the IMF’s measure to “lower the tax-free basis” will be replace with a virtual one: increase the amount of private expenditures via electronic transactions.
The Finance Ministry is tabling the draft budget 200 in Parliament on Monday.
The draft budget will provide a primary surplus that easily meets the 3.5 pct of GDP target and forecasts that growth will be between 2.5-3.0 pct in 2020.
The draft will be submitted to the European Commission on October 15.
Regarding tax evasion, he said that the government aims at “more effectively controls, better use of available information and expansion of electronic transactions.”
Staikouras also reassured that the so-called “13th pension” will not be cut.
