The Greek parliament has backed a 2011-2015 austerity plan demanded by the European Union and the International Monetary Fund in return for bailout aid.

The plan includes a total €28.35bn of fiscal measures and foresees a total €14.27bn of spending cuts. It also calls for €14.08bn of tax measures.

Parliament will vote on Thursday on an implementation law enabling individual budget measures.

Here are the main measures and targets:

Tax Increases
Taxes will increase by €2.02bn this year, with additional taxes of €3.68bn in 2012, €156m in 2013 and €685m in 2014. This includes a €1.37bn 'solidarity levy' charged this year on households, ranging between 1% and 5% of income.

Other measures include the lowering of the tax-free threshold to €8,000 from €12,000, higher property taxes, legalisation of unauthorised buildings, a VAT rate hike on restaurants and bars to 23% from 13%, and luxury levies on yachts, pools and cars. The government also wants to scrap a string of tax exemptions.

Cutting the Public Sector Wage Bill
€770m in 2011 and €600m in 2012, €448m in 2013, €306m in 2014 and €71m in 2015. The reduction will come from a curb on hirings and allowance cuts, as well as by shedding all public sector workers employed under temporary contracts. The government will replace only one in 10 civil servants who retire this year and one in five in coming years.

Cuts in Social Benefits
€1.19bn this year, €1.23bn in 2012, €1.03bn in 2013, €1.01bn in 2014 and €700m in 2015. Reduction will mainly come by means-testing beneficiaries and cutting a string of benefits.

Increase Social Contribution Receipts
€629m this year, €259m in 2012, €714m in 2013, €1.14bn in 2014 and €504m in 2015. This is to be achieved through an increase in social security contributions and by cracking down on contribution evasion and undeclared labour.

Close/Merge Public Entities and Subsidies
€540m in 2011, with further €700m in savings in 2012-2015.

Fighting Tax Evasion
€878m in 2013, €975m in 2014 and €1.15bn in 2015.

Cuts in Public Investment Spending
€950m this year.

Defence Cuts
€200m in 2012 and €333m each year in 2013-2015.

Cuts in Healthcare Spending
€310m this year and a further €1.81bn in 2012-2015, mainly by lowering regulated prices for drugs and widening the use of e-prescriptions.

Other Measures include savings in state-owned enterprises and cuts in subsidies to local government.

Privatisations
The government aims to raise a total of €50bn from privatisations by 2015. Here are some key sales as presented by the Finance Ministry and an EU/IMF document obtained by Reuters:

2011 Privatisations
Greece aims to get €5bn by selling stakes in betting monopoly OPAP, lender Hellenic Postbank, port operators Piraeus Port and Thessaloniki Port, as well as Thessaloniki Water among others.

Greece earlier this month agreed to sell a 10% stake in Hellenic Telecom to Germany's Deutsche Telekom. The government exercised its 'put' option to sell the stake for around €400m.

2012 Privatisations
The government plans to raise €10bn by selling stakes in Athens Water, refiner Hellenic Petroleum, electricity utility PPC, lender ATEbank, as well as ports, airports, motorway concessions, state land and mining rights.

2013-2015 Privatisations
Plans are to raise €7bn in 2013, €13bn in 2014 and €15bn in 2015 with property sell-offs, and yet more stakes in ports, airports and highways.

Reuters