State spending to jump €5 bln next year

The draught state fund for 2026 foresees a spending leap of 5.074 cardinal euros compared to 2025, driven chiefly by the concern spending of the Recovery and Resilience Fund, which ends adjacent August, and the unit to afloat sorb the available resources will beryllium great.

RRF expenditure is expected to scope €7.192 billion, from €4.9 cardinal this year, accrued by astir €2.3 cardinal oregon 46.7%. In total, together with the NSRF and the nationalist component, the Public Investment Program will scope €16.7 billion. In summation to the RRF, the summation successful spending by €5 cardinal is directed to the measures announced past period successful Thessaloniki, arsenic well arsenic to the accrued postulation of weapons systems.

The draught fund does not, however, deviate from the limits connected the summation successful nett nationally financed superior expenditure, arsenic provided for by the caller budgetary rules.

Next year’s fund will trust connected revenues from indirect taxation, mainly, conscionable arsenic has been the lawsuit successful caller years: From the €24.2 cardinal from indirect taxes successful 2020, these revenues will scope an awesome €40.8 cardinal successful 2026, so successful this play VAT revenues grew by €16.6 billion.

A ample part, possibly the largest portion of this increase, is owed to inflation, with citizens paying higher amounts of VAT successful each of their regular transactions, but besides to accrued tourism flows.

In wide the fund draught puts this year’s superior surplus astatine 3.6% of GDP, higher some than the 2025 fund forecast of 2.4%, and its update successful April successful the yearly Mid-Term Progress Report, which amounted to 3.2% of GDP. A superior surplus of 2.8% of GDP is forecast for 2026. Growth is projected to emergence from 2.2% this year to 2.4% successful 2026, and ostentation will scope 2.2%. Unemployment will travel to 8.6% adjacent year.

The nationalist indebtedness is estimated to scope 145.4% of GDP this year, slightly little than the 147.8% recorded successful 2010, when Greece entered its archetypal bailout program. In 2026, it is expected to alteration by a further 7.8%, to 137.6%.