The government estimates a budget surplus excluding new measures of 0.3% of GDP this year, thus having a fiscal margin of around 800 million euros for the new proposals without jeopardizing the balance of accounts.
In the Stability Program (SP) for the period 2024-2028, sent by the government to parliament this Monday, the Ministry of Finance indicates a reduction in the budget surplus from 1.2% of GDP in 2023 to 0.3% this year.
This scenario is based on an invariant policy, that is, it takes into account only measures legislated or provided for by the previous government.
The European Parliament estimates the executive has a budget headroom of around 800 million euros for new policies this year, including the roughly 200 million euros that the IRS cuts announced by the government last week should cost.
The reduction of IRS income rates to the eighth group, which will amount to a total reduction of approximately 1,500 million euros (about 1,300 million euros already included in the state budget for 2024 and an additional 200 million euros due to the new measure), will be announced on Friday. after the meeting of the Council of Ministers.
In the invariant policy scenario, the Ministry of Finance’s forecast for this year is one tenth higher than the 0.2% recorded in the state budget, but lower than the 0.8% predicted in the Democratic Alliance (AD) election program.
The implementation of the Stability Program this year is mainly a calendar formality, since with the new European fiscal rules the document loses its previous weight, replaced by medium-term fiscal and structural plans that must be sent by member states to Brussels. until September 20.
Brussels has thus allowed the implementation of a simplified program as the government begins negotiations on a new medium-term program with the European Commission in the summer.
Parliament is discussing the Stability Program on April 24, and the Council of Public Finance (CFP) has decided not to give an opinion on the document, since the macroeconomic scenario represents an invariant policy.
Author: Lusa
Source: CM Jornal
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