The first step toward the 2027 national budget will take place tomorrow. The final proposal will be submitted by Makis Keravnos to the Council of Ministers, after which it will proceed to the Parliament.
According to the Ministry of Finance, the new budget will be surplus-based, balanced, and growth-oriented, taking into account the risks arising from geopolitical developments.
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The key guidelines and the fiscal framework have already been established by the Strategic Framework for Fiscal Policy for the 2027–29 period.
According to this framework, public revenue is expected to reach 16.9 billion in 2027, with the bulk coming from social security contributions and taxes on production and imports. General government spending is projected to reach 15.8 billion, with the largest portion allocated to social benefits, followed by the public sector payroll. The figures may vary slightly in the final budget text.
“The 2027 budget is a pre-election budget, so I believe there will be a tendency to increase certain expenditures. Care must be taken to ensure that spending is properly targeted so that funds are channeled to productive sectors of the economy. Beyond that, there are issues concerning the horizontal expansion of spending// I am referring, first, to pension reform; second, to tax reform; and third, to the sectors on which the government will focus to promote economic growth.” Tassos Yiasemidis, Economist
Based on current forecasts, the growth rate in 2027 is expected to be 2.9%, harmonized inflation 2.5, unemployment is estimated to remain at 4.5%, and public debt will fall to 46.8% of GDP.
Following its approval by the Cabinet, the goal is for the budget to be submitted to Parliament by October 2.
See the report by Rafaella Stavrinou
