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The last day that the parties were able to present proposals to change the State Budgets – more than 1,350 in total – brought some rapprochements to the left, visible mainly through the statements of the PS and the PCP to journalists in Parliament. The next few days will say if they are enough for the document to be viable. With the proposals of the PS to pay the salary of the workers in dismissal at 100% -one of the problems that led the PCP to fail the Supplementary Budget and that is thus solved, the parliamentary leader of the PCP, João Oliveira, assumed-, to increase the minimum of existence in the IRS or to schedule the hiring in Health, there are some points of contact between the two parts of the negotiation, although the patterns of the proposals are, however, different.
And this negotiation will continue, the PCP confirmed: João Oliveira said that until now there has been a certain “rapprochement” by the Government, especially in health matters, but this continues to be very “limited”, with criticism of the Government for planning a reduction of three points of deficit from next year. “In the coming days,” said the deputy, the talks will continue, as they should continue with the PAN, which indicated the proposals already accepted by the Executive. On a different path from that of the Bloco de Esquerda and Governo: so far there are no scheduled meetings and the blockers, unlike all parties, did not hold a press conference this Friday, as they had presented their unique package of 12 measures to make the budget viable.
Below is a summary of some of the measures that the parties are putting forward in Parliament.
PS promises 100% layoff, IRS relief (existence minimum), and suspension of utility outage
The Socialists presented several proposals, some already negotiated with the left-wing parties, even so, some news emerged from the Socialist parliamentary leader, Ana Catarina Mendes, such as the increase in the minimum level from which families begin to pay the IRS in 100 euros (the so-called minimum of existence), which allows “a few thousand families”, said the socialist, to be exempt from paying this tax. Another of the heaviest budgetary proposals has to do with the dismissal that will last until the end of 2021. Ana Catarina Mendes said that “an alteration will be made to the extraordinary support for progressive recovery that can reach up to 100%. That is, dismissal 100%. ”This means that workers’ compensation can be paid in full.
The socialist package of measures is divided into four main areas:
1 – Strengthening of public services based on health: programming of the hiring of health professionals (negotiated with BE); creation of five mental health teams dedicated to childhood and health (it is also part of the left’s negotiation package) and they start for the exclusivity of health professionals, as was registered in the basic health law, but only “After the pandemic we must dedicate and concentrate our energies so that full dedication is fulfilled,” said Ana Catarina Mendes.
At this point, Social Security will be reinforced with 150 more workers and the national emergency line will be reinforced.
2 – In the context of “protection of employment and income”, the PS proposes:
a) Such alteration to the Extraordinary Support of Progressive Resume;
b) Changes in the new social benefit, which now includes informal workers, managing partners and is expected to cover a total of 250 thousand people and cost around 600 million euros.
3 – Support for families and young people:
a) Changes in Porta 65;
b) Suspension of the cut of essential services due to non-payment such as water, electricity and communications, as happened at the beginning of the pandemic;
c) Expansion of the social water tariff;
d) Increase of the minimum stock by 100 euros
e) Investment of 10 million euros for the housing of professionals of the security forces
Finally, the PS promises a strengthening of the entity through transparency and an increase in the number of PJ inspectors and scientific policy to combat corruption.
CFP: “320 greenways” to improve EO
The summary of the PCP’s proposals is not easy to do, since the party presented a total of 320, more than any other party, in the most varied areas. But one thing is certain: in opposition to the “twelve red lines” of the Bloco de Esquerda, João Oliveira presented the alternatives of the PCP as “320 green ways to solve national problems” because, as the party has always recalled, abstention in the generality was a “starting point” for further negotiations.
Of the proposals mentioned by the parliamentary leader, the following stand out:
- Ensuring that wages are paid 100% to all workers.
- Regulation of the risk subsidy
- Internalization of complementary diagnostic tools. 20% increase in the NHS
- Elimination of the sustainability factor in access to retirement and creation of new minimum pension levels
- Reduction of the IRC rate to 15% up to 25 thousand euros
- Recognition of rights in managing partners in support of social security
- Reinforcement of PART (program to reduce the price of passes)
- Extraordinary contribution in the insurance sector
The 91 PSD proposals
The PSD presented 91 proposals to modify the State Budget, considering that the current version is not “adequate” to the current moment of crisis nor does it “present a course” for the country to solve its structural problems. The Social Democrats focused on three areas: public health, measures to stimulate recovery and strengthen the cohesion of the country.
“The PSD has always had a speech of great responsibility,” said deputy Afonso Oliveira, guaranteeing that the budgetary impact of these measures will be “residual.” This is not the time to propose a tax cut ”. On the other hand, he attacked the cost that is being known associated with the proposals presented by the PCP, which may be the key to making the Budget viable in the final vote, since until now the Left Bloc and the Government have not understood each other in the negotiations.
Among the alteration proposals presented by the PSD, these measures stand out:
- a program for the recovery of waiting lists in health, which would involve articulation with the private and social sectors;
- the achievement of the objective that all Portuguese have a family doctor;
- incentives for landlords to reduce rents for commercial establishments;
- payment in installments of VAT, IRS and IRC, exempt from interest;
- exemption from penalties for those who paid the IRS and IRC late in the first period of the state of emergency;
- suspend payment on account while the restrictive measures of economic activities last;
- include the managing partners in the beneficiaries of the new social benefit (amendment already assumed by the Government);
- 50% reduction in the value of tolls in ex-SCUT in the Algarve and inland (renegotiating contracts so as not to harm the State);
CDS, IL and Chega want to lower taxes
Also the CDS, which as the PSD voted against the Budget in general, presented its proposals -95- with one difference: the party wants to reduce several taxes, the IRS immediately- which would have a withholding tax whose impact, calculates the party, would reach one billion euros – and the IRC, whose rate would drop to 19%.
Also, I would like to go to the Liberal Initiative, which proposes, among its 100 proposals, a reduction of VAT to restaurants, to 6%, and establish only two rates for the IRS (way to its ideal proposal, which would be the one-time ). and a general IRC rate of 15%. João Cotrim Figueiredo’s party still wants to abolish the IMI surcharge (the tax that became known as the ‘Mortágua tax’).
Chega presents “140 to 150 proposals” to alter the budget, André Ventura also said this Friday. Examples are the support subsidy for teachers’ accommodation, risk subsidies for all security forces, the criminalization of illicit enrichment (which has been fought by the Constitutional Court and that Ventura puts in this process arguing that corruption has ” costs “for the State), or a salary review for Health professionals. The party also wants to see a reduction in the taxes to be paid by companies when the state owes them money, as well as the same reduction in VAT on catering (to 6%, but temporarily for now). Added to this is the revocation of the audiovisual contribution (which is intended to pay for the public radio and television service).
Among the more than 200 PAN proposals to modify the Budget, the parliamentary leader, Inês de Sousa Real, defended the importance of the document including more “social responses” without forgetting the environmental crisis. He highlighted some of them, such as the reinforcement of professionals from the INEM Center for Psychological Attention and Crisis Intervention and the reinforcement of the means to combat corruption. In the environmental field, he also highlighted the creation of a carbon tax of two euros for passengers traveling by air and sea to revert to the Environmental Fund, the prohibition of the sale of cosmetic products and detergents with microspheres or microplastics and the creation of a legal regime. for the constitution of ‘points of hope’ to protect marine biodiversity.
“This is, without a doubt, the most challenging budget of our time,” said Inês de Sousa Real, highlighting that some PAN proposals have already been accepted by the government and that the next two weeks will be decisive for the party to decide the vote. in the general final vote.
