ATHENS, Greece - Greek lawmakers are expected to vote late on Saturday for the 2016 budget, with its economic forecasts revised upward to show near zero growth in 2015 and a small contraction next year for the debt-ridden country in its sixth year of austerity.
The coalition government, which enjoys a narrow majority in the 300-seat parliament, is trying to meet conditions for an unpopular third international bailout enacted in July in return for safeguarding Greece's place in the eurozone.
The 2016 budget, the first tabled by the leftist Syriza-led government, expects zero economic growth in 2015, compared with a forecast for a 2.3% contraction in the draft budget presented in October. For 2016, the budget projects a 0.7% contraction, smaller than the initial 1.3% forecast.
"In the period between the tabling of the draft budget and the presentation of the final draft of the 2016 state budget, there was a significant positive development: the upwards revision of economic growth in 2015 and 2016,, the Greek Finance Ministry said in a statement on November 20.
"This revision showed that the Greek economy did not fall into recession in 2015 since the country's Gross Domestic Product remained unchanged. In comparison with a projection included in the pre-draft for a contraction of 2.3% in 2015, the final estimate is an impressive improvement.", it said.
Last week however, Greece's state statistics agency drastically revised downwards the economy's third-quarter contraction to 0.9%, from 0.5% previously estimated.
The data is consistent with European Commission forecasts that Greece will fall back into recession in 2015 after a brief respite last year.
Nevertheless, the European Commission's representative in Greece, Declan Costello, said on Monday that the Commission may have to revise upwards its estimates because the country's economy will most likely post close to zero growth in 2015.
Meanwhile, the Greek government has already seen its parliamentary majority dwindle from 155 to 153 seats in its effort to implement the harsh measures imposed by its creditors.
Measures facilitating foreclosures against people who cannot pay their mortgages led to the loss of support from two lawmakers who refused to back the bill..
Also, the plans to slash the minimum monthly pension have caused two general strikes in a month, a sign that Prime Minister Alexis Tsipras faces a rough ride despite winning reelection in September on the bailout programme.
After first storming to power at the beginning of this year promising to free Greece from the restrictions of bailout programmes, Tsipras in July accepted a three-year, 86-billion-euro ($93-billion) rescue deal with strict conditions to enact further cutbacks.
As part of the agreement, Greece is set to introduce new pension cuts next to keep its shaky retirement system viable. - Rappler.com