- Ministry of Administrative Reform, 2.1 billion
- Ministry of Labor and Social Affairs, 4 billion
There will be additional cuts to pensions, wages and social spending. The "knife" will go deep into the bone of social allowances, targeted for --3 billion in cuts.
On Tuesday, the Minister of Finance met with and made budget cut recommendations to the ministers. Following those recommendations, the economic team will meet to draw up a list of the total amount of cuts, which will be presented to the Prime Minister by Mr. Stournaras within days.
On Wednesday, political leaders who support the government will meet to decide, among other things, whether Greece will propose an alternative scenario to the Troika -- an estimated --7.5 billion in cuts in the biennium 2013-2014, instead of --11.5 billion, as well as discussions regarding the distribution of the remaining --4 billion in future years if there is lengthening of the period of adjustment.
A very large knife will be taken to social benefits in order to save --3 billion. Also under the microscope are a total of 89 bonuses and benefits ranging from old-age pensions to the uninsured paid by OGA to special benefits OAED.
The code "social benefits' is crucial because it will result in more than a quarter of the planned spending cuts of -- 11.5 billion. Also, if the amount is added to the projected savings from imposing a ceiling on pensions, with a preponderance of the limit of 2,400 euros, that will save an extra --1 billion.
The Ministry of Finance is working on a plan, which cuts down on cost savings of 3% of GDP, or about --6.5 billion, on the basis of proposals of the Center for Planning and Economic Research (KEPE).
As these interventions are added, they serve to further shrink the public sector, which will lead to cost savings of around 1% of GDP or above --2 billion, while the cuts to social benefits will contribute 1.5% of GDP or an additional --3 billion.
Finally, the government will push for the implementation of measures already adopted, as illustrated by the reductions in the salaries of employees in public enterprises and the implementation of the single salary to all utilities.