Income tax cut of €500m coming; Defense spending up

The government plans to stimulate job opportunities with a 500 million euro tax cut. The money will be used to reduce the rates of the firs income tax bracket so that everyone paying income tax will benefit.

According to a source has confirmed that there will be an estimated 0.3 percent cut on the first income tax bracket (€19,645) A consensus was reached on these measures between the ruling parties and three opposition parties.

Defense spending will receive an extra €50 million next year.

The government also plan to increase development aid by €375 million. This money is intended for emergency aid as well as bringing relief to refugees in their regions.

Due to the improvement in the economy the government has some breathing room in the budget for these tax cuts, reports. There were fewer unemployment benefit claims than expected as well as windfalls generated by health care