ATHENS, Dec. 16 (Xinhua) -- Greece's parliament on Tuesday approved the state budget for 2026, projecting 2.4 percent growth in gross domestic product (GDP), slightly above the 2.2 percent estimated for 2025.

The vote took place as thousands of public sector workers and local officials staged a 24-hour nationwide strike, demanding higher wages, increased recruitment, and stronger anti-inflation measures. Protesters gathered outside parliament and in cities across the country, with teachers, healthcare workers, and dozens of mayors joining calls for more funding for public services.

The budget passed with 159 votes in favor and 136 against in the 300-seat parliament, with 295 lawmakers taking part in the vote.

Addressing parliament ahead of the vote, Prime Minister Kyriakos Mitsotakis said the budget aims to support businesses and households while safeguarding fiscal stability. He cited new tax cuts and income increases above inflation as tools to strengthen purchasing power.

He added that improved economic indicators allow the government to redistribute gains achieved through years of fiscal discipline following Greece's debt crisis from 2009 to 2018.

The budget projects inflation easing to 2.2 percent in 2026 from 2.6 percent this year. Unemployment is expected to decline to 8.6 percent from 9.1 percent in 2025, while public debt is forecast to drop to 138.2 percent of GDP in 2026 from 145.9 percent this year.

Mitsotakis acknowledged that rising living costs continue to weigh on households. He announced that the minimum wage would rise to 950 euros (about 1,116 U.S. dollars) next year - the fifth time since 2021.

He said additional measures are needed to support young people, families, and pensioners, as ongoing geopolitical uncertainty and economic shocks have led some European countries to adopt austerity policies.

On housing, Mitsotakis pledged subsidies for renovating vacant homes, stricter regulations on short-term rentals, and incentives for private investment in affordable housing.

But even as the government outlined new initiatives, discontent continued to surface across sectors.

Protesters also expressed solidarity with farmers who have maintained roadblocks nationwide for several weeks to demand greater state support. Mitsotakis said the government would provide additional assistance to farmers within the limits of fiscal capacity. Enditem