Finance Minister Fernando Medina explains the measures to support families on Tuesday and guarantees that this is “the widest application in our country.”
“This is a program that responds effectively to families because it is facing the phenomenon of inflation on a scale and inclusive,” Medina said.
The head of the financial portfolio suggested that the measures include costs related to fuel, housing, transport and energy, and also ensure that “the main part is the return of income, whether for those who have income from work, pensions or social income.” Medina also said that the program “has a very strong focus on the return of revenues to Portuguese society through and through.”
Fernando Medina said the program “builds responses in the context of inflation”, adding that “at every moment and at every stage, the government has adapted the measures until it reached this program.”
The finance minister said the inflation estimate was “much higher than we expected at the time of the state budget” and ensured that the government’s response began as early as October 2021 with an autovoucher and lower ISP.
The €125 support provided to every citizen with a monthly income of up to €2,700 will reach 5.8 million adults at a cost of €730 million. The amount will be paid at the beginning of October.
Retirees will also receive a half-board bonus in October, when they are most “in need,” Medina said. This bonus covers 2.7 million people and will cost the government one billion euros.
The VAT reduction on electricity from 13% to 6% applies to 85% of consumers and costs 90 million euros per year.
Fernando Medina also clarified that the program does not affect the deficit and public debt targets. “We will have the growth of the Portuguese economy by 6.4%,” says the Minister of Finance.
The Minister of Labour, Solidarity and Social Protection of Portugal, Ana Méndez Godinho, assured that the support “will restore purchasing power already in October”. Ana Mendes Godinho also clarified that the bonuses are paid out of the pension and not by pensioners. That is, a person who receives more than one pension will receive a bonus rum for each pension.
Finance Minister Fernando Medina also clarified that “family support is not subject to the IRS.”