Emphasis on enhancing incomes – Economic figures and forecasts
The new budget includes all the fiscal interventions to boost incomes that were announced, additional support measures of 2.5 billion euros, as well as a series of measures to fight tax evasion.
From January 1, approximately 660,000 civil servants will receive a horizontal increase of 70 euros per month, while liability allowances are also increased by 30%.
Public employees who have children will receive additional benefits from 20 to 50 euros per month due to the adjustment of family allowances.
There is also a €1,000 tax-free increase for workers with children in both the public and private sectors, and the benefit ranges from €90 to €220 per year, depending on the number of children.
An increase in tax-free by 1,000 euros will lead to a further reduction in tax. For example, an employee with two children and an annual income of 20,000 euros, in 2023 he will have a tax of 2,360, while in 2024 he will have a tax of 2,140. That is, it will have a reduction of 220 euros.
Increased pensions by 3% will be received within the next few days by 1.8 million pensioners who do not have a personal difference.
Interventions continue in the labor market. There is the three-year freeze that is lifted for employees.
In April 2024, the third consecutive annual increase of the minimum wage is expected, which is expected to exceed 800 euros.
Economic figures and forecasts
As for where the budget puts the bar on economic figures, the triptych concerns:
growth of 2.9% in the new year
increase in primary surplus
debt reduction
The 2.9% is based on a forecast that private consumption should increase further in 2024 to a rate of 1.3%.