The government will present the draft budget for next year on Tuesday.

On Tuesday, the government will present to the Assembly of the Republic the draft state budget for 2024 (OE2024), which should provide for growth of more than 2% and a budget surplus this year.

Proposal OE2024 was approved by the extraordinary Council of Ministers on Saturday after the government presented the general provisions of the document to the parties and signed a confirmation of an agreement on increasing income with the social partners.

According to information provided by the executive and parties and put forward by some MPs, the OE2024 proposal calls for gross domestic product (GDP) growth of 2.1-2.2% (above the 1.8% forecast) this year, but for 2024. the forecast is about 1.5%.

Among the main measures to be included in the budget proposal are cuts to the IRS, as well as updates to levels and changes to the IRS treatment for youth, with the provision that young people will not pay the IRS on their income in the first year of work.

Other measures aimed at young people should include a refund of one year of tuition for every year of work in Portugal and a free pass for students under 23 years of age.

The government has presented civil servant unions with a wage increase proposal for 2024 that ranges from 6.8% for wages to 3% for higher wages. The budget should also end cuts to the cost of travel and transport allowances for government employees.

According to the government, pensions will be renewed in 2024 according to the formula provided by law.

The presentation of the state budget to parliament is scheduled for 13:00, while a presentation by Finance Minister Fernando Medina is scheduled for 15:00 in Lisbon.

Proposal OE2024 will be debated and voted upon as a whole on October 30 and 31, with a final global vote scheduled for November 29.