New Austerity Measures Not Final
The draft budget released Monday left many questions unanswered by making it clear that the new VAT rates, the possible further increase in excise duties, the final level of public investment and the change in the taxation of the oil used for heating have not yet been decided.
The final measures of 2011 will be probably rubberstamped on 18 November, when the final draft will be submitted to the parliament, after the troika gives the green light. The reason, as explained yesterday by a top executive of the Ministry of Finance, is that the assessment of the revenue each measure will bring has not yet been completed.
The reality however is that the government still does not know the gaps in the execution of this year΄s budget, not only on terms of income but costs as well. Officials still do not have a complete picture of the new costs created by hospitals, public utilities and other public entities.
The problem is that possibly there will not be a complete picture even in November because many public sector bodies do not provide details. At this point the Troika will be the cataslyst, as the new budget in November will be drafted under its own estimates and in this way new austerity measures for 2011 will be decided.
(Capital.gr)