By G. Kouros
[email protected]
Contained spending will characterize the Greek state budget for 2018, with the overall ceiling put at 56.1 billion euros, down from 56.6 billion euros in 2017, according to a circular published on Tuesday and signed by Alternate FinMin Giorgos Houliarakis.
At first glance, only public sector wages and social security spending are "immune" from the austerity-based budget, at least at this stage of fiscal planning. The spending caps apply to all general and extended state entities, from ministries to public hospitals, to pension funds and local governments, such as municipalities.
Compiling and delivering individual budgets by all state-affiliated entities - based on the latest directions issued by the finance ministry - must be dispatched to the ministry by Aug. 18. A draft budget for 2018 will then be composed by the General Accounting Office for submission to Parliament on the first Monday of October, as the law mandates.
Individual ceilings for specific ministries include 3.7 billion euros for the health ministry in 2018, down from 4.3 billion euros this year, while spending by public hospitals is budgeted at 2.5 billion euros for 2018, down from 3 billion euros in 2017.
Conversely, the education ministry will see an increase in its budget, from 4.9 billion euros in 2017 to 5.19 billion euros next year.
The labor and social insurances ministry will also witness a major hike in its budget, from 12.4 billion euros this year to 18 billion euros in 2018.
A small increase is envisioned for the defense ministry, budgeted at 3.1 billion euros in 2018 from 2017's 3.08 billion euros.
Of the 56.1-billion-euro figure, 49.3 billion euros affect the regular budget, with the remaining 6.75 billion euros are ascribed to the public investments program.
Public sector wages, in total, will increase by 850 million euros, reaching 12.2 billion euros, up from 11.3 billion euros in 2017. Overall social security spending will increase by 700 million euros, according to estimate.
