World Economy

New Greece Budget Cuts Spending

New Greece Budget Cuts SpendingNew Greece Budget Cuts Spending

Greece’s Parliament has approved the 2016 budget that includes deep spending cuts and tax hikes amid economic recession, AP reported. The budget passed early Sunday, 153-145, with 2 lawmakers absent in the 300-member parliament. The vote was strictly along partisan lines. The government forecasts zero economic growth this year and a contraction of 0.7% in 2016. Earlier, it had predicted declines of 2.3% and 1.3%, respectively. Despite spending cuts of around €2 billion ($2.18 billion) and a similar amount in tax hikes, debt is forecast to grow to €327.6 billion ($356 billion) or 187.8% of GDP from 180.2% in 2015.