The Assembly of the Republic begins this Wednesday the discussion of the general proposal for the state budget for 2023, which will be opened by the Prime Minister and will last until Thursday.
As in previous years, António Costa will open discussion on the government’s proposal, which is scheduled for a final global vote on November 25, with approval virtually guaranteed by an absolute majority of the PS.
From an economic and financial point of view, the government’s proposal for the state budget for 2023 reflects the current international situation with high inflation and rising interest rates, exacerbated by the energy crisis following the Russian military intervention in Ukraine.
The government expects growth to slow in 2023 to 1.3% of gross domestic product (GDP) from 6.5% at the end of this year, a figure that some analysts see as optimistic. The same doubts arise with regard to the inflation predicted by the socialist executive branch for 2023 of the order of 4%, after this year it was estimated at 7.4%.
The government’s budget proposal also reflects the goal of maintaining a fiscal consolidation trajectory that sees the deficit fall from 1.9% this year to 0.9% in 2023, and the debt cut to 110% of GDP next year.
Despite predictable economic and financial difficulties next year, the 2023 budget proposal is based on two recent mid-term agreements made by the government: the first regarding social consultations at the beginning of the month; and the second signed this Monday with two of the three public administration unions.
On October 9, the executive branch signed an income and competitiveness agreement with the employer confederations and UGT, forecasting wage growth of 5.1% in 2023, 4.8% in 2024, 4.7% in % in 2025 and 4.6% in 2026 and an increase in the minimum wage to €900 in 2026.
This wage increase is accompanied by tax breaks for companies, as well as an additional three billion euros to be invested in electricity and gas systems to cap energy prices.
The multi-annual salary increase agreement for public administration employees, which was not signed by Frente Comum, CGTP-IN, provides, among other things, for an annual salary renewal equivalent to the salary level (52 euros) or a minimum of 2% for all civil servants by 2026 , thus guaranteeing a total increase of at least 208 euros over four years.
More controversial has been the strategy the executive is pursuing with respect to the pension increase, assuming a one-time emergency benefit of 50% this month, but lowering the increase percentage until 2023 with a welfare sustainability argument. .
Pensions up to 886 euros will increase by 4.43%, pensions between 886 and 2659 euros will increase by 4.07%, and the rest (which are subject to renewal taking into account the current legal formula) will increase by 3%. 53%.
On a political level, the government this year has sought to step up invitations to the dialogue of the left around the state budget, as happened in the previous two legislatures, but only the only PAN deputies, Inés Souza Real, and Livre, Ruy Tavares should be available to consider whether to make an executive diploma viable.
The Left Bloc has already classified the budget proposal as “absolutely unacceptable” because it does not guarantee wage renewal in the face of inflation, and made it clear that it cannot contribute to a “simulacrum” of negotiations with the government, while PKP member general secretary Jeronimo de Souza accused the socialist leader of siding “with the big economic groups” in his budget proposal, for which he says he sees no way out.
On the part of the parliamentary forces on the right of the PS, a vote against is guaranteed and was announced two days after the public presentation of the document by Finance Minister Fernando Medina.
On the 12th, SDP chairman Luis Montenegro announced a vote against the Social Democrats, considering that the draft budget “has no patch” and is characterized by the “hopelessness” of the government with “hands down”.
On the same day, Chega President Andre Ventura said he would vote no, warning of the risks of a document that “raises eyebrows” and does not strengthen the economy, and the outgoing Liberal Initiative president, João Cotrim Figueiredo, justified putting forward the government document on the grounds that it represents ” a huge disappointment” without introducing any structural reform.
Author: Lusa
Source: CM Jornal
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