Greece's draft budget submitted to Parliament on Monday shows the country is set for a sixth year of recession, with its economy predicted to contract by 3.8 per cent in 2013.

This year's recession is expected to see the economy shrink around 6.5 per cent, the document said. Unemployment is predicted to rise to 24.7 per cent in 2013 from an average 23.5 per cent in 2012.

The budget sees Greece's government still running at a loss despite waves of spending cuts and tax hikes over the past two years.

It estimates the government will post a primary deficit, which excludes interest rates paid on existing debt, of 1.4 per cent of GDP this year. That's worse than the 2012 budget's forecast for a primary surplus of 1.1 per cent of GDP.