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For next year the Greek government is planning drastic changes in tax legislature and reforms in the state administration. This became clear from the budget of the country for 2010, which was introduced to the Ministry of Councils today. The goal is to effectively limit state expenses and to increase state income to about €5 billion.

The main task the Greek government is setting for itself is to lower the budget deficit with 9% to 10% of the GDP by end of 2010 and to disprove the forecasts of Joaquin Almunia that the budget deficit will reach 12.5%-12.7% of the GDP for the same period. Greece, together with Ireland, Spain, Slovenia and Great Britain is in the EU group of countries with the highest budget deficit. This became clear after Joaquin Almunia presented the report.

This week the draft project for 2010 will have to be voted for in the parliament. The state financial plan is based on series of measures, which aim to stop the negative development of the economy and to lower the budget deficit. In order to achieve those goals PASOK’s government has planned to increase taxes for companies with high annual income and to significantly increase taxes of excisable goods – fuel, alcohol and cigarettes.

The new measures in 2010’s budget will aid to decrease state expenses, which are expected to reach €56 billion until the end of 2009 – a much bigger amount than the planned one of €40.7 billion in the beginning of 2009. “With the draft project for 2010 we are aiming to protect the weakest economy layers of the society, to support the middle class, to strengthen local trade and to bring back the trust of international investors,” said PM Georgios Papandreou during a session of the Ministry of Councils, where this year’s budget was agreed upon.