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This Tuesday the Minister of Finance publicly presents the Government’s proposal for State Budgets for 2021. Follow here live and up to the minute.
10:02 am – Regarding Novo Banco, the Minister of Finance guarantees that the “OE does not foresee any loan from the State to the resolution fund. It says that the banking system will lend to the resolution fund and that is how Novo Banco will finance it.” João Leão guaranteed that “there is availability of bank credit for the resolution fund.” In 2021 the intervention that in Novo Banco only passes through the financial system. Banks, resolution fund and Novo Banco. He isThe State will not participate in this process in 2021 ”.
09h54 – Regarding the approval of the EO, the minister reaffirms that he is optimistic. “This phase is a phase in which we will be in dialogue with the parties. This process began some time ago. The EO will try to answer the main questions that were raised by the partners. In particular, the Left Bloc. It has always been BE’s ambition was to create this new social support based on the poverty line reference and there is a measure in the State Budget that addresses this concern. A second concern had to do with limiting the layoffs of profit-making companies. it also has a proposal to address this concern. And finally, the third major concern had to do with the hiring of health professionals. OE has that “.
09h52 – “I believe that with dialogue and availability of negotiation the budget will be approved”, said João Leão
09:44 – “This recovery is based on solid financial foundations that we have built over the last 4 years. We are taking advantage of and will take advantage of the margins of budgetary flexibility but we have a duty not to compromise the stability and future of the Portuguese. The rigor of the accounts It is not and cannot be synonymous with austerity. The rigor of budget management is decisive, “said the Minister of Finance.
09:42 – “The response to the crisis and the recovery of the economy do not make us return to the path we had been following,” guarantees the Minister of Finance.
09h41 – “Another great pillar of response to the crisis is public investment. Absolutely decisive for the recovery of the economy.” The state budget predicts a 20 percent growth in public investment.
09h39 – “We will promote the recovery of the economy by helping companies”, says João Leão.
09h34 – “In fiscal matters, three measures are taken, which together translate into a very significant increase in household income in 2021. There are more than 550 million euros in the pockets of families in 2021”, said the Minister of Finance. .
09h32 – “We hope that in 2021 the recovery of employment will begin”
9:30 am – “We will not hesitate to protect families and support companies to support employment,” said João Leão.
09h28 – “The year 2020 will be a year of contraction of the world economy unprecedented in the modern era,” says the Minister of Finance.
09h27 – The presentation of the Budget begins. “It is the budget that Portugal and the Portuguese need,” says the Minister of Finance, guaranteeing that this budget does not have “austerity.”
09h12 – The presentation that was scheduled to start at 09h00 is delayed. It is not yet known what time it will start.
8:45 am – The press conference with the Minister of Finance is scheduled to begin at 9:00 am
What does the document say?
The State Budget proposal for 2021 foresees a recession of 8.5% this year and a growth of the economy of 5.4% next.
He estimates that the economy will grow 3.4% in 2022.
2022 will be the year in which Portugal will once again comply with the rules imposed by Brussels on the budget deficit, which is expected to reach 7.3% of GDP in 2020, 4.3% in 2021 and 2.8% in 2022.
The public debt ratio is expected to improve only in 2021, which now represents 130.9% of GDP, after reaching 134.8% in 2020.
The unemployment rate is expected to rise to 8.7%, falling to 8.2% in 2021, the government estimates.
The proposal that was delivered to the AR is also marked by a tower. The document attributes almost 470 million euros to the Resolution Fund, the body that has financed Novo Banco.
However, João Leão’s team has already clarified that it was a mistake, which has already been corrected. After all, the $ 470 million loan is intended for CP, not the Resolution Fund.
The budget proposal is expected to be voted broadly by parliament on October 28, and the final global vote is expected to take place on November 26.
