The government has discovered more than a dozen orders signed by Socialist government officials that increase spending this year by more than a billion euros. But the surprises don’t end there. All 13 of these decrees were signed after the election results were announced on March 10, the report says. CM.
The order entailing the largest costs (566 million euros) relates to the Environmental Fund and the deduction of tariffs for access to energy networks. This “rebate” was created through the so-called social energy tariff, which aims to protect the most economically vulnerable households.
An October 2023 order signed by Secretary of State for Energy and Climate Ana Gouveia states that the discount that will apply to electricity grid access tariffs from January 1, 2024 “shall correspond to the value allowing a 33.8% discount on transition tariffs for the sale of electricity to end consumers, excluding VAT, other taxes, fees, charges and late payment interest that may apply.” Now, according to CMThis discount resulted in costs of €300 million for the current year, which had to be paid to E-Redes, the distribution company of the EDP group. In addition, expenses of 200 million also associated with this rebate, this time due in 2023, also remained unpaid.
In addition to this example, there are two more orders related to the Agency for Development and Cohesion (the body responsible for coordinating regional development policies), the costs of which will increase by 53 million euros.
The additional allocation of 100 million made by the General Secretariat of the Ministry of National Defense by order of March 21 also increased expenses.
Already yesterday, a statement from the Ministry of Finance, revealing the first figures for the execution of the March budget, where the surplus turned into a deficit of 259 million euros, said that “this strong deterioration in the budget balance between January and March 2024 is largely the result of decisions and commitments adopted this year by the previous government and, in many cases, after the March 10 elections.”
Contacted CMA source from the previous government said that all of these expenses were in the transition portfolios handed over to the new leader and were discussed in meetings between the two finance ministers.” Additionally, according to the same source, “the budget surplus scenario is 0.” 7% for this year already includes all these expenditure activities.”
Executive source Luisa Montenegro denies that the current government was aware of these new expenses, but adds that they can be included in the current budget without the need for adjustment through various budgetary allocations.
Ukraine’s expenses on ammunition
An additional 100 million euros from the General Secretariat of the Ministry of Defense is justified by a source from the previous government as a commitment by the Portuguese state to support Ukraine with more weapons and ammunition. Some things will also be brought to the attention of the AD government.
Drought support
The Agriculture and Fisheries Finance Institute’s $88 million budget has been spent supporting farmers through the effects of drought.
Regularization
A source in the previous government explains the 53 million expenditures of the Agency for Development and Cohesion as amounts due for the regularization of regional policy payments.