GREEK lawmakers approved the country’s 2017 budget Saturday, projecting a return to strong economic growth next year but also imposing a wave of tax hikes and austerity cuts prescribed by its international lenders.

    Athens estimates its economy will expand by 2.7 percent in 2017, supported by the trickle-down impact of bailout cash inflows and resurgent private demand. It also sees a primary surplus, excluding debt-servicing costs, of 2 percent of GDP.

    If achieved, it would be the first signs of growth for the recession-battered economy since a short period in 2014. Prime Minister Alexis Tsipras called it “a budget” of optimism, growth and economic recovery.” On Thursday, the government said it would distribute a one-off benefit to pensioners ahead of Christmas due to a better than expected fiscal performance in 2016.

    Greece says it achieved a primary surplus equal to 1.1 percent of economic output in 2016, outperforming its 0.5 percent target. Its 181 billion-euro economy is expected to contract by 0.3 percent this year, according to the budget draft.

    The national debt will be equivalent to 176.5 percent of GDP in 2017, according to the budget, nearly 4 points lower than this year. Greece’s debt-to-GDP ratio is still the highest in the eurozone.

    The leftist-led government, which has been accused by its lenders of foot-dragging in the sale of state assets, aims at 2 billion euros in privatization revenues in 2017.

    Greece signed up to an 86 billion-euro international bailout last year after tough negotiations. It is now at odds with its official creditors over a projected fiscal gap in 2018 as well as over labor and energy reforms in a crucial bailout review.(SD-Agencies)