Parliament's state budget office on Thursday offered a more restrained outlook over the draft 2017 budget, which was tabled on Monday by the leftist government, predicting "short-term recessionary trends" that can subsequently be overturned via successful reviews of the Greek bailout program.
"Achieving fiscal goals comprise international obligations on the part of the country," the independent report by the budget office reiterated.
The same research unit confirmed what it called the current government's volition to implement the memorandum-mandated adjustment program, while warning, however, that certain forecasts "depend on numerous conditions, whereby making their realization tentative."
One such uncertain forecast is linked to the rate of GDP growth, the budget office warned, as the Greek government, along with European institutions and even the IMF, have projected GDP growth in 2017 to range from 2.5 to 2.7 percent.
At another point, the authors of the report note that implementation of a "social solidarity income", a type of welfare program, aims to boost the general concept of social justice, although the measure is countered by other actions, such increases in practically all forms of indirect taxes, such as a hike in the VAT rate.
Referring to the repercussions of the government's tax policy, Parliament's budget office reminds that tax hikes discourage employment growth and entrepreneurship, and thereby impair growth prospects.
