Finance Minister João Leão officially informed Parliament of a 7% widening deficit this year, despite noting that the billion euros of potential loss of state revenue this year will be recovered the following year.
"The Government informs Parliament that as a result of the amendments to the Supplementary Budget proposal approved by the Assembly of the Republic, the deficit estimate for 2020 will be increased by 0,7% of GDP, rising from 6,3% to 7% of GDP" , said at the hearing at the Budget and Finance Committee in Parliament this Wednesday. "After the vote on the Supplementary Budget was concluded, special measures were approved, proposed by the different parliamentary groups, which lead to a significant worsening of the budget deficit by around 1.400 million euros", he stressed.
The supervising minister explained, as had already been advanced by the Deputy State Secretary to the Prime Minister and by himself in statements to the agency Lusa, that the difference from the estimates included in the Supplementary Budget table results from an increase of 400 million euros on the expenditure side and up to XNUMX billion euros on the revenue side, associated with payments on account.
However, he stressed that there are measures with a one-off impact and that “the billion euros of potential loss of State revenue this year are recovered the following year”.
“This is a right Budget because it is the Budget that the country needs, in the current context to face the economic and social problems generated by the crisis. But it is a budget that was made possible due to the rigor and credibility ensured, which allows at this stage to ensure low costs of State financing, ”he said.
Costa Silva documents only “set of forecasts”
Afonso Oliveira, PSD deputy, questioned João Leão about the estimates mentioned by António Costa Silva in the preliminary plan 'Strategic Vision for the economic and social recovery plan for Portugal 2020-2030 ″ of a drop in GDP that can reach up to 12% this year. The supervisory minister clarified that the consultant hired by the Government is limited “to document, and well, the set of forecasts that exist about the Portuguese economy, how a good document should do it”, emphasizing that not including it “would be ignoring the information that is being produced by the Portuguese economy ”.
“The Government has always assumed that we are making forecasts within an absolutely exceptional framework, with high uncertainty. The forecasts of all entities have been adjusted, ”said João Leão, guaranteeing that“ we will have no fear, if any, of changing our forecasts at the appropriate time ”.
(Updated at 09h55)
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Finance Minister João Leão officially informed Parliament of a 7% widening deficit this year, despite noting that the billion euros of potential loss of state revenue this year will be recovered the following year.
"The Government informs Parliament that as a result of the amendments to the Supplementary Budget proposal approved by the Assembly of the Republic, the deficit estimate for 2020 will be increased by 0,7% of GDP, rising from 6,3% to 7% of GDP" , said at the hearing at the Budget and Finance Committee in Parliament this Wednesday. "After the vote on the Supplementary Budget was concluded, special measures were approved, proposed by the different parliamentary groups, which lead to a significant worsening of the budget deficit by around 1.400 million euros", he stressed.
The supervising minister explained, as had already been advanced by the Deputy State Secretary to the Prime Minister and by himself in statements to the agency Lusa, that the difference from the estimates included in the Supplementary Budget table results from an increase of 400 million euros on the expenditure side and up to XNUMX billion euros on the revenue side, associated with payments on account.
However, he stressed that there are measures with a one-off impact and that “the billion euros of potential loss of State revenue this year are recovered the following year”.
“This is a right Budget because it is the Budget that the country needs, in the current context to face the economic and social problems generated by the crisis. But it is a budget that was made possible due to the rigor and credibility ensured, which allows at this stage to ensure low costs of State financing, ”he said.
Costa Silva documents only “set of forecasts”
Afonso Oliveira, PSD deputy, questioned João Leão about the estimates mentioned by António Costa Silva in the preliminary plan 'Strategic Vision for the economic and social recovery plan for Portugal 2020-2030 ″ of a drop in GDP that can reach up to 12% this year. The supervisory minister clarified that the consultant hired by the Government is limited “to document, and well, the set of forecasts that exist about the Portuguese economy, how a good document should do it”, emphasizing that not including it “would be ignoring the information that is being produced by the Portuguese economy ”.
“The Government has always assumed that we are making forecasts within an absolutely exceptional framework, with high uncertainty. The forecasts of all entities have been adjusted, ”said João Leão, guaranteeing that“ we will have no fear, if any, of changing our forecasts at the appropriate time ”.
(Updated at 09h55)