[ATHENS] The Greek parliament approved a 2016 budget featuring sharp cuts in spending and some tax increases to satisfy the country's international lenders at a time of growing austerity fatigue.
The leftist-led government of Prime Minister Alexis Tsipras is under pressure to deliver tangible benefits to its poorest citizens after having signed to a third rescue package from euro zone governments in August worth up to 86 billion euros.
The budget makes 5.7 billion euros (S$8.7 billion) in public spending cuts including 1.8 billion from pensions and 500 million from defence. The savings are greater than this year's 1.5 billion euros. It also included tax increases of just over 2 billion euros.
It was passed by 153 votes to 145 with two members absent. "This budget is a difficult task for a government that wants to leave its mark with social justice," Mr Tsipras told lawmakers just before the vote.
He stressed that for the first time in five years, spending on hospitals, social welfare and job creation was being increased modestly within the bailout's constraints.
Mr Tsipras said that was possible because his government had secured greater fiscal space by reducing its primary budget surplus target before debt service to 0.5 per cent of gross domestic product in tough negotiations with the creditors.
The budget will have a deficit of 2.1 per cent of GDP next year compared with 0.2 per cent this year.