Windfall budget dismissed
Portugal’s finance minister insisted this weekend that the State will not rake in more than it will pay back to families and companies because of additional revenues from energy companies.
Fernando Medina said: “No government is in a position through budget revenues alone to offset losses in revenues as “ a result of inflation”.
However, he denies accusations that the government is currently following a policy that is too restrictive. Fernando Medina insisted that the government is not “saving resources” garnered from additional VAT revenues and promised it would “reimburse the extra revenues the State has received to support the economy and families.
In an interview with IN and TSF, the Government, which has not given a date to present a raft of measures to support companies, emphasises that the Government “is not seeking to achieve budgetary outcomes that are significantly better than those expected” and does not seek “a budget bonanza”.
It is calculated that in order to keep to the target of reducing the budget deficit from 2.8% to 1.9%. “The State will not raise more than it will pay out and is necessary to spend to offset the current effects of inflation” said the minister.