Government submits €12.9bn 2025 budget

The government on Thursday submitted to parliament the state budget for fiscal year 2025, with projected total expenditures of €12.9 billion and revenues of €10.3 billion.

Direct and indirect taxes account for €8.48 billion, or about 80 per cent of total revenues.

On the other side of the equation, the total expenditures of €12.93 billion are slightly lower than for 2024 – mostly due to less spending on servicing the public debt.

Spending on debt servicing is projected to come to €2.75 billion, compared to €3.38 billion in 2024.

Transfers, which include welfare benefits and grants to public-law organisations, are expected to reach €3.99 billion – a 5.3 per cent rise on 2024. Also, next year the government’s contribution to the national healthcare system (Gesy) will be greater than in 2024.

The balance sheet includes forecasts on various economic indicators, such as GDP growth. GDP is expected to increase by 3.1 per cent in 2025, 3.2 per cent in 2026 and 3.3 per cent in 2027.

Unemployment is projected to gradually drop from 5 per cent this year to 4.8 per cent in 2025, 4.6 per cent in 2026 and to 4.5 per cent in 2027.

The inflation rate, based on the consumer price index, will hover around the 2 per cent mark during the 2025-2027 period.

Another plus is that the public debt-to-GDP ratio is anticipated to fall in the coming few years – from 69.3 per cent this year, to 64.2 per cent in 2025 and 53.5 per cent in 2027.