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The optimistic recovery plan of Georgios Papakonstantinou

15 April 2011 / 21:04:53  GRReporter
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The second major step that the Ministry of Finance is trying to make is to drastically reduce the operating costs of public institutions. Ministries and public organizations will reduce telephone costs, costs for rental of buildings and PR to a minimum. Another measure that should contribute to the expenditure cuts is the introduction of electronic counters, which will replace the old cashiers familiar in the recent past. All these measures will also save about 1% of the GDP or 2.5 billion euros more by 2015.
 
For the same period will be saved 1.1 billion euros or 0.5% of the GDP through the merger of public enterprises and another 2.3 billion euros will come from the restructuring of others. The costs for armaments and those in the health care will be reduced with 1.2 billion euros and the funds for medicines and supplies in government hospitals will fall by 0.7% of the GDP or 1.5 billion euros. The government is inclined to cut the costs of social security funds, which are on the brink of bankruptcy and the payment of pensions and social securities has been often uncertain in recent months. Thus, another 2.5 billion euros will be cut, mainly by reforming the social policy. 4.4 billion euros will come from tackling tax evasion, a more effective collection of tax obligations and cutting 905 different tax breaks. Another 3.5 billion euros are planned by improving the control system for the collection of social security receivables, and about 600 million euros will come from optimizing the cost of local government organisations.

Tags: EconomyMarketsCrisisRecovery programGreeceGeorgios Papakonstantinou
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