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A BE’s proposal to cancel the transfer of 476 million euros to Novo Banco, voted in favor on Thursday by PSD, BE, PCP, PEV, Enough and the deputy not registered Joacine Qatar Moreira, abstaining from PAN and CDS-PP, “it is a circus number, irresponsible is true, but it does not violate the Constitution or the State Budget Framework Law,” the lawyer and former Secretary of State for Tax Affairs in the second Government of António Guterres told Lusa . (PS), Rogério Fernandes Ferreira.
The former professor of Public Finance and Financial and Budgetary Law, at the Faculty of Law of the University of Lisbon, understands that what the Constitution and the Budgetary Framework Law (LEO) impose is, “only, that the Law of Indicate ‘have in mind ‘and’ take into account ‘, respectively, ‘expenses incurred by law and contract’ “.
Therefore, they oblige, in the first place, the Government to includethe in the budget bill that he presents to the Assembly of the Republic. But they do not force the deputies, when discussing and approving the budget law, to keep this record. Which can approve-there where to refuse-there where change“, defends the member of the working group designated by Sousa Franco for the elaboration of the preliminary design of the Budgetary Framework Law published by the Ministry of Finance.
According to the former leader, “the powers in this matter and in this period, of the Government and the Assembly of the Republic, are respectively, to propose and approve, or reject or modify, the budget law proposal “
“These abilities are unique to each of these organs sovereignty and are absolute and non-delegable“, he indicated.
However, BE’s proposal, approved by parliament, prevents “the Government from fulfilling and honoring a prior contractual commitment that it has entered into on behalf of the Portuguese State”, whose associated expenditure “cannot be made if and while it is not included in the Budget”.
According to the lawyer, “the truth is that any breach of a contractual clause due to the impossibility of making the expense (not budgeted) will always generate civil liability (contractual) and compensation, both for consequential damages and for lost profits, without any doubt. Declared by judicial sentence “.
The former professor of Public Finance also added that “these ‘expenses derived from any court ruling’ must also be taken into account and ‘considered’ in the budget law.”
“Now, during the budget execution, the deputies, even those who approved this BE proposal, cannot propose the inclusion of ‘new’ expenditures,” on pain of violating the braking law, explained Rogério Fernandes Ferreira to Lusa.
Thus, “either the expense is due to its own line or to the line of execution of the sentence -which certainly the estimated value will not allow- or the circus will continue, imposing, already during the budget execution of 2021, a new proposal of Law of budget modification of the Government’s own initiative “, a budget rectifying, he concluded.
The Plenary of Parliament this Thursday confirmed the vote on the specialty of BE’s budget proposal, which cancels the transfer of 476 million euros from the Resolution Fund to the New Bank.
In a confusing vote that had to be repeated, after avocados and discussed in plenary, PSD, PCP, PEV, Enough and the deputy not registered Joacine Qatar Moreira joined his votes to the BE to make this change possible, despite the votes against the PS, Liberal Initiative and the unregistered deputy Cristina Rodrigues, and the abstention of the CDS-PP and make PAN.
The Minister of State and Finance, João Leão, has already admitted, in statements to Rádio Renascença and RTP, that the Government can go to the Constitutional Court to analyze the proposal.
In parliament, João Leão also said that the proposal to cancel the transfer to Novo Banco “violates the Budgetary Framework Law, which obliges the State to budget for the commitments assumed.”
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