Medina insists that the government ensures correct accounts

Medina insists that the government ensures correct accounts

Finance Minister Fernando Medina insisted today in Parliament that the proposed government budget for 2022 (OE2022) ensures that the state’s accounts remain correct, renewing the commitment made by the Stability Program (PE).

“The OE2022 proposal reduces the effects of inflation and its effects on families and businesses,” he said today, opening the discussion at EP 2022-2026, adding that it “renews commitment and ensures that the state’s accounts remain correct.”

In his first debate since taking office, the Portfolio Head stressed that the European Action Plan 2022-2026 “was developed in a context of high uncertainty”.

He stressed that “the world that has not yet recovered from more than two years of the epidemic is now facing a new crisis caused by the invasion of Ukraine,” noting that the document outlines the strategy of rapprochement with the European Union and provides for the reduction of public debt.

Medina ensured that the Executive would continue to reduce the public debt, “in the context of growth but also in a situation of high uncertainty”, arguing that this was “the largest contribution that the state could make to the Portuguese”.

In PE 2022-2026, released on March 28, the government expected GDP to grow by 5% this year, standing 0.8% above the pre-pandemic level, and 3.3% in 2023, driven by the Recovery and Resilience Program (PRR).

However, the scenario was reviewed in the proposed state budget for 2022 (OE2022), which was delivered on April 13, with the government forecasting an expansion of 4.9% this year.

The European Parliament also expects the budget deficit to fall from 2.8% of GDP in 2021 to 1.9% of GDP this year, declining to 0.7% of GDP in 2023 and to 0.3% of GDP in 2024.

When the document was released, the CFP declared that it had no “conditions” for assessing the macroeconomic scenario underlying European economic policy, saying it was not “an expectation because it did not include the policy measures to be adopted”.