Social benefits will increase by €41 mln next year, Labour and Social Insurance Minister Zeta Emilianidou said during a parliamentary debate about her ministry’s budget that is seen rising 4% to €916.7 mln, from €885.8 mln in the 2014 budget.
The Minister said that 92% of the budget or € 843 mln has been allocated to social benefits, an increase of €41 mln, noting that "it is remarkable that in this difficult economic time, there is an increase in social spending".
The Minister said the increase is due to the introduction of the guaranteed minimum income (GMI) for which €208 mln has been allocated for 2015, compared to €160 mln in the 2014 budget.
Emilianidou said that the government plans to table an amendment to current legislation, whereby those eligible for the GMI allowance to start receiving the aid from the date of application and not the date of approval. She said that to date some 2,000 people have benefited from GMI and those approved will receive the benefit by Christmas.
She added that 2,500 people who already receive public benefits, did not apply for GMI because they found a job or they do not wish the ministry to assess their financial situation and their assets.
The Ministry’s budget includes €80 mln for low-income pensioners, €115 mln for child benefit, €19 mln for victims’ relief funds and €86 mln for the minimum pension supplement.
She also said the ministry’s development budget amounts to €22.6 mln, compared to €28 mln in 2014, a decrease of 19%.
Emilianidou said 40% of unemployed young people who had joined the six month practical training project, have now been hired, helping to reduce unemployment levels.
She said the ministry is also examining a plan for those who have fallen behind contributions to the Social Insurance Fund, to repay their debts through instalments after signing a contract with the state. The project, Emilianidou added, is based on the Greek model, giving incentives to borrowers to repay their debts as the Ministry does not intend to proceed with criminal prosecution and liquidating companies.
She also told the House Finance Committee that 800 provident funds have been dissolved and about 200 new ones have been established.
