Greece's Ministry of National Economy and Finance submitted the 2026 State Budget to Parliament and, alongside the usual USB submission, made it available in fully digital form via a QR code linking to the ministry’s website hosted on G-Cloud. The accompanying letter to Members of Parliament sets out macroeconomic and fiscal projections for 2025–26, including real GDP growth of 2.2% in 2025 and 2.4% in 2026, nominal GDP rising to EUR 260.0 billion in 2026, and domestic inflation easing to 2.2% in 2026. The budget projects investment growth of 5.7% in 2025 and 10.2% in 2026, supported by a 2026 public investment programme of EUR 16.7 billion (EUR 14.6 billion in 2025), with the investment-to-GDP ratio rising to 17.7% in 2026. Unemployment is forecast at 8.6% in 2026. On the fiscal side, the primary balance is projected at 3.7% of GDP in 2025 and 2.8% in 2026, while the general government overall balance is projected at 0.6% in 2025 and -0.2% in 2026; general government debt is forecast at 138.2% of GDP in 2026. The letter also outlines tax and income measures, including a structural reshaping of income taxation focused on young people, families with children and the middle class, a gradual abolition of ENFIA for settlements with up to 1,500 residents, VAT reductions on border islands with up to 20,000 residents, rental tax reductions combined with an annual refund of one month’s rent, and lower imputed living expenses for housing and other assets with dependent children exempted from the minimum living expense; pension measures include the gradual removal of offsets between pension increases and the “personal difference”, further increases linked to GDP and inflation, and additional support each November for low-income pensioners, uninsured elderly people and people with disabilities.

Original source View in tracker