![Once-off allowance to counter price rises for vulnerable households](https://www.ot.gr/wp-content/uploads/2022/02/ot_inflation_economy.png)
Against the background of the explosion of inflation and the wave of price rises that has depleted family budgets, the government is planning a new support package for the weaker income classes.
The financial staff has put on the table and is considering granting an extraordinary one-time allowance to weak households such as low-income pensioners, long-term unemployed and the beneficiaries of the Social Solidarity Income.
The plan provides for the payment of the allowance before Easter with the final decisions for the beneficiaries and the amount of aid to be taken in March when it will have clarified the landscape for the development of 2021 which is expected to move over 8.5% as well as the budget margins based on the course of the budget and the fiscal space that will have been created by the larger GDP growth.
Read also: Consumers in despair: Galloping inflation is emptying the “family basket”
This equation is not easy as the government has decided to keep the primary deficit this year exactly where it is described in the budget, at 1.4% of GDP. Thus, the households that are in real need of support and are most affected by the wave of price increases should be identified. In this context, the application of criteria for the selection of the beneficiaries of the “Easter allowance” is examined. Among scenarios on the table, the selection of beneficiaries will be based not only on their monthly earnings but on their total income and assets.
If this formula does not work out then the model of the Christmas allowance given to low-income retirees, people with disabilities and households receiving the Minimum Guaranteed Income will be followed and the payment of the aid will be made automatically in the bank accounts of the beneficiaries.
For the price hikes caused by the energy crisis in the electricity and gas bills, the government has mobilized monthly subsidies of 350-400 million euros. The grants are funded by the Energy Transition Fund without the need for state budget assistance. If the energy nightmare lasts beyond the first half, then the Ministry of Finance will need to finance the subsidies from the state budget.
At the same time, developments on the growth and inflation fronts are putting the Treasury on a trajectory to revise key budget figures such as growth, inflation, deficit and debt. It is certain that the new data on the course of the real economy and public finances that will be reflected in the Stability Program in April will predict higher real and nominal GDP due to the higher than forecast growth in 2021 and the higher inflation for this year, which will lead to an automatic reduction of the deficit and public debt as a percentage of GDP and will “free up space” to finance additional interventions in the economy.
The government is also betting on the recovery of tourism, with the data so far pointing to a full recovery of the pandemic losses and a return of revenues to 2019 levels and possibly higher.
![ot.gr](/wp-content/themes/whsk_otgr/common/imgs/fav.ico/favicon-32x32.png)
![ot.gr](/wp-content/themes/whsk_otgr/common/imgs/fav.ico/favicon-32x32.png)
Latest News
![ELSTAT: 1.5% Increase in Business Turnover in May 2024](https://www.ot.gr/wp-content/uploads/2024/07/epixeiriseis_2-600x414.jpg)
ELSTAT: 1.5% Increase in Business Turnover in May 2024
The most significant increase in turnover in May 2024 compared with May 2023 was recorded from the enterprises of the Accommodation and Food Service Activities, sector which grew by 14.8%.
![Cosco: Container Traffic Decline at Piraeus Port Continues](https://www.ot.gr/wp-content/uploads/2024/07/olp1-scaled-1-2048x1312-1-600x384.jpg)
Cosco: Container Traffic Decline at Piraeus Port Continues
This strategic shift has diminished Piraeus's standing as a prominent Mediterranean port and a key transshipment hub post-Suez Canal.
![Gov’t Eyes Return of Power Subsidies Amid Spike in Rates](https://www.ot.gr/wp-content/uploads/2024/07/power-lines-2048x1365-1-600x400.jpg)
Gov’t Eyes Return of Power Subsidies Amid Spike in Rates
According to reports, the government will resume an electricity subsidization program, given that forecasts cite disruptions – i.e. higher rates
![ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock](https://www.ot.gr/wp-content/uploads/2024/07/ot_georg_PROIONTA_money-1-600x352.png)
ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock
The 6.3% rise in May 2024 is largely driven by an 8.8% increase in the crop output group, particularly due to changes in olive oil prices, and a 0.5% increase in the animal output group.
![Balkans Blackout Highlights Climate Threats to Power Grids](https://www.ot.gr/wp-content/uploads/2024/07/blackout-1-600x457.png)
Balkans Blackout Highlights Climate Threats to Power Grids
The surge in electricity demand during the heat wave and the power deficit in Balkan markets have driven up prices in the Greek wholesale electricity market.
![Greece in Top 4 Destinations Favored by European Tourists](https://www.ot.gr/wp-content/uploads/2021/06/ploio-600x400.jpg)
Greece in Top 4 Destinations Favored by European Tourists
Greece was selected by 5.9% of respondents who were asked where they would vacation this year, up from 5.4% in the same survey last year
![Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive](https://www.ot.gr/wp-content/uploads/2024/06/euros-2048x1365-1-600x400.jpg)
Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive
The international ratings firm raised Greece to investment grade in early August 2023
![First Seaplane Test Flights to Skopelos, Alonissos, Skyros](https://www.ot.gr/wp-content/uploads/2024/06/hellenic-seaplanes-pilotikes-ptiseis-ydatino-pedio-lavriou-600x450.jpeg)
First Seaplane Test Flights to Skopelos, Alonissos, Skyros
After decades of on-again, off-again efforts to schedule regular seaplane routes to Greece's numerous island and coastal destinations the prospect now appears within sight
![ELSTAT- Overall Import Price Index for May 2024 up 2.8% y-o-y](https://www.ot.gr/wp-content/uploads/2023/08/unnamed-41.jpg)
ELSTAT- Overall Import Price Index for May 2024 up 2.8% y-o-y
The same price index had decreased 20.8% from May 2022 to May 2023
![Over 7 in 10 Employees Feel Their Contributions Are Not Appreciated](https://www.ot.gr/wp-content/uploads/2024/06/ergasia-ergazomenos-600x300.jpg)
Over 7 in 10 Employees Feel Their Contributions Are Not Appreciated
Specifically, the option "Subjective opinions are prioritized over objective data" ranked highest in importance for young employees, with a score of 3.89 out of 4