Montenegro says it wants ‘positive reports’ at year-end but blames PS and Chega for state of public finances

The Prime Minister said on Wednesday the executive remained committed to having “positive financial statements” at the end of the year, but gave the PS and Chegu joint responsibility for the state of public finances, wanting to “legislate in place of the government”. .

During a two-week parliamentary debate with Luis Montenegro, PSD leader Hugo Soares asked the head of government about data published this week by INE that indicated the country had a budget deficit in the first quarter.

The prime minister said he wanted to reassure the Portuguese but repeated criticism of the previous PS government.

“The situation that was bequeathed to us did not correspond to what was very emphatically presented: that the treasury was full and the country was awash in money due to a budget deficit,” he said.

However, Montenegro added that there was “no cause for concern” despite the fact that the first quarter – “the sole responsibility of the previous government” – ended with a deficit of more than 250 million euros in government accounts and 0.2% of GDP. in the national accounts, attributing the deficit to extraordinary spending of more than a billion euros in the first three months of the year, as well as “a set of decisions that did not and do not have budgetary consequences.”

“The government intends to reach the end of the year with a balanced state account, I would even say, with a positive state account. But this goal for this year and next does not limit the government alone,” he warned.

As for Montenegro, all parties that approve measures in the Assembly of the Republic “that have budgetary implications” will also be responsible for the public accounts for 2024 and 2025, in particular the PS and Cega.

Montenegro cited the example of IRS cuts approved by parliament, saying they did not comply with the “spirit and content” of the government’s proposed law and that they would have a “financial impact greater than that projected for 2024 and 2025” by the executive.

“But fiscal policy is also an instrument of economic policy. The economic consequences of a decision by the Assembly of the Republic place responsibility on those who made that decision. It is good that the country knows this from now on – because these parties, rather than deciding to recommend to the government, wanted to pass laws instead of the government – these parties also wanted to take on their responsibility,” he said.

Hugo Soares took advantage of his speech to point out the contradictions with the PS, saying that even today, Socialist MP Miguel Matos classified the understanding that the executive director of the PSD/CDS-PP reached with the majority of teachers’ unions as a “million-dollar agreement” that PS secretary general Pedro Nuno Santos supported the campaign.

“Did the PS understand that the agreement should not be concluded?” he asked.

The PSD parliamentary leader also quoted statements by former Socialist minister Ana Paula Vitorino, president of the Office of Mobility and Transport, against the reduction of tolls on the former SCUT approved in the PS proposal, concluding: “Even they do not understand each other.”

In its response, Montenegro recalled that regarding teachers, former Education Minister João Costa also did not agree with the position of the previous Prime Minister António Costa, and regarding tolls he accused PS and Chegu of “irresponsibility that will have consequences for the budget.” 180 million euros.”

“At PSD, we have always advocated for reduced fares in areas with low population density and no alternatives, but this is different from a completely discretionary exemption,” he said, asking what users in the metropolitan areas of Lisbon and Porto would think of this “uneven treatment.”