Despite data showing Greece is heading for its sixth year of recession, the government is pushing ahead with constructing the track in Xalandritsa, near Patras.
The total cost of the project will be €94.6m (£75.6m) and it is hoped the circuit will be able to host a Formula One race in the future.
The news comes as a draft Budget for 2013 shows that the Greek finance ministry expects GDP to contract by 3.8pc next year after shrinking 6.5pc this year.
Meanwhile, Premier Antonis Samaras must prove to the troika he can deliver an austerity package of €13.5bn, amid reports at the weekend that Greece will need financial help from Europe for the next eight years.
Mr Samaras will target pensions, benefits, and top civil service pay in a bid to unlock the next €31bn payment from the EU.