Government will spend 0.9% of GDP on social measures
The public finance deficit will drop to 0.3% of GDP in 2019, up from the initially planned 0.1%, according to Stability Program approved by the cabinet. Balanced books are expected in 2020-21. The increase in deficit stems from the €600m social package, to be unveiled soon. Without its measures, the budget would post a 0.6% of GDP surplus next year, thanks to growing tax revenues. The public debt should drop from last year’s 50.9% of GDP to 43.3% in 2021. The increase in government spending should up the tempo of economic growth by 0.5 of a point next year, to 4.5%.