The government presented a draft budget for next year on Monday

The Government is presenting this Monday to the Assembly of the Republic a proposal for the State Budget for 2023 (OE2023), which should forecast a growth of 1.3% and a deficit of 0.9% of GDP next year.

Following an extraordinary meeting of the Council of Ministers on Tuesday, the government presented to the parties on Friday the macroeconomic scenario on which the proposal is based. With the consent during the social consultation on Sunday, the document was approved by the Council of Ministers on the same day.

According to the announcement of the Ministry of Finance, OE 2023 should be delivered to the Assembly of the Republic at 13:00 this Monday.

According to information provided by the executive branch and the parties and presented by some MPs, the OE2023 proposal calls for a gross domestic product (GDP) growth of 1.3% in 2023 and an inflation rate of 7.4% this year and 4% next.

According to the parties, the deficit target of 1.9% of GDP, expected for 2022, should also be maintained, but the government wants to reduce it to 0.9% in 2023, when it predicts the public debt weight will be 110% GDP.

Among the key measures to be included in the budget proposal are a regular update of IRS income levels in 2023 based on a 5.1% wage increase to ensure wage updates are fiscally neutral, and a selective reduction in the RPI.

In September, the executive announced that pensions up to €886 would increase by 4.43%, while pensions between €886 and €2,659 would increase by 4.07%, while the rest (which would be subject to renewal subject to the legal formula in force) will increase by 3.53%.

OE2023 as a whole will be debated in Parliament on October 26 and 27, with a final global vote on the diploma of the government proposal scheduled for November 25.