Filenews 22 October 2022 - by Eleftheria Paizanou
Despite the strong inflationary pressures, in 2023 the Ministry of Finance estimates that general government revenues will increase by 6.9%, corresponding to €761 million, and will amount to €11.7 billion, compared to €11 billion this year.
The Government attributes the expected increase in revenues to the improvement of economic activity, the increase in investment and employment, resulting in an increase in production and import tax collections, which is projected to be around 9%. Obviously, inflation also contributes, which leads to increased amounts of VAT.
On the occasion of the beginning of the discussion of the state budget for 2023 in the Parliament on Monday, the report concerning the economic developments 2022 and the prospects for 2023-2025 was promoted. It emerges from the report that the state is likely to have increased revenues also due to the withdrawal of measures to deal with inflation, which this year amounted to €89 million in the form of reduced revenues.
In 2022, inflation is expected to close at 7.7% while next year it is estimated to decrease to 3%. According to the report, tax collections on income and property are expected to show a 6% increase in 2023, while social contributions are projected to show an increase of 6.1%.
On the other hand, general government expenditure will increase in 2023 by 5.6% and will amount to €11.2 billion, compared to €10.6 billion. in 2022. Spending will go up due to the 7.8% increase in social benefits. Earnings expenses are up by 7.8%. Expenditure on subsidies will be reduced by 28.7%, due to the termination of the subsidy of part of the electricity bills of households and businesses.
