FACTBOX-Greek Parliament votes on 2010 budget on Wednesday

Dec 22 (Reuters) - Greece's 2010 budget, which aims to
shrink the public deficit to 9.1 percent of gross domestic
product next year from 12.7 percent in 2009, comes to a final
vote in parliament on Wednesday.

The budget is expected to pass easily on Wednesday night,
since the ruling Socialists have a comfortable 160-deputy
majority in the 300-seat parliament. [ID:nL5323580]

Following are key targets in the budget plan, including
estimates of the savings that major measures may generate, as
well as analyst comments on their likely success in stabilising
the country's finances.

****************************************************************

(in pct, euros bln)

2010 2009 2008

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DEFICIT TO GDP (%) 9.1* 12.7 7.7

DEFICIT (bln) 22.176 30.557 18.506

GDP GROWTH (%) -0.3 -1.2 2.0

GDP (bln) 244.233 240.150 239.141

PUBLIC INVESTMENT (% y/y) +8.4 -1.3 +9.2

NET ORDINARY REVENUES (%) +9.0 -4.7 n/a

NET ORDINARY REVENUES (bn) 53.700 49.260 51.680

ORDINARY SPENDING (%) -2.3 15.9 n/a

ORDINARY SPENDING (bln) 69.796 71.438 61.642

PUBLIC DEBT (% to GDP) 120.8 113.4 99.2

PUBLIC DEBT (bln) 294.950 272.300 237.196

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Source: Finance Ministry, 2010 budget

* After the budget plan was submitted to parliament last
month, the government said it would aim to reduce the deficit
further to 8.7 percent of GDP next year. This revised target may
be included in an updated 3-year stability and growth plan, to
be unveiled next month.

POLICY MEASURES

REVENUES

* In total, the government plans to increase net ordinary
budget revenues by about 4.5 billion euros or 9 percent.

* About 1.2 billion euros of this would come from cracking
down on tax evasion and settling taxpayers' overdue debts.

* An increase in tobacco, alcohol and real estate taxes
would contribute another 1.5 billion euros to budget revenues.

* A one-off corporate tax is expected to produce 1 billion
euros of additional revenues.

* Reintroduction of a progressive tax on large property
holdings, inheritances and bequests; as a result, the government
expects total real estate and inheritance tax revenues to rise
to 865 million euros in 2010 from 490 million this year. (in
separate tax bill, which is pending)

* Abolition of tax exemptions and a current, flat-rate tax
regime for certain professional groups; no specific savings
targetted at present. (in pending tax bill)

* Introduction of capital gains tax and effective taxation
of offshore companies; no specific revenues targetted at
present. (in pending tax bill)

SPENDING

* The government would cut primary spending (before debt
payments) by 2.3 billion euros or 3.8 percent.

* It plans 1.4 billion euros of savings by not repeating
one-off 2009 payments to settle state hospital debts.

* Another 457 million euros of savings would come from
defence spending cuts.

* Ministries' operating costs, such as travel expenses and
power bills, are to fall 26 percent to 2.6 billion euros.

* A freeze would be imposed on public sector wages above
2,000 euros a month. However, civil servants making less than
that amount would receive pay rises above inflation.

FURTHER MEASURES ANNOUNCED AFTER BUDGET SUBMISSION

The following additional measures were announced after the
draft budget was submitted last month and will not be voted upon
this Wednesday. They are expected to be included in an updated
three-year Stability and Growth Plan in January.

* A 10 percent cut in additional, supplemental public sector
wages, which often account for a substantial part of civil
servants' overall salaries.
* A hiring freeze for permanent public sector jobs in 2010,
excluding health and education, and the hiring of one new civil
servant for every five retiring from 2011 onwards.

* A one-third reduction of all short-term employment
contracts in the public sector in 2010.

* A 10 percent reduction in social security expenditures in
2010; no specifics have been revealed.

* A 50 percent cut in board members' pay at public
enterprises in 2010; managers' pay in state-run firms would be
capped and cut by at least 10 percent; no bonuses would be paid
to managers of state-controlled banks, and bonuses for private
bank managers would be taxed at 90 percent.

ANALYSIS

-- Many analysts and investors believe the 2010 budget
targets are probably attainable.

-- However, they fear that since some of the measures are
one-off steps -- including the windfall corporate tax, the cut
in social security spending, and the restraints on executives'
pay -- there is no guarantee of fiscal restraint in subsequent
years.

-- Fitch Ratings says the policy mix is less than ideal;
revenue-raising measures rely heavily on a clampdown on tax
evasion, where the payoff is highly uncertain. It wants greater
emphasis on cutbacks in spending, where structural fiscal
weaknesses are most acute.

-- Fitch calculates the partial public-sector wage freeze
will have little or no impact on spending in 2010 (less than 100
million euros). It thinks controls on public-sector recruitment
are unlikely to reduce headcount materially for some years.

-- Moody's Investors Service says the degree of "public
acceptance" of the government's austerity measures will be key
to its success; major unions have said they plan or are
considering one-day strikes to protest against planned wage and
pernsion reforms.

(Reporting by Harry Papachristou and George Georgiopoulos;
Editing by Andrew Torchia)