From an economic and financial point of view, the government’s proposal for the state budget for 2023 reflects the current international situation with high inflation and rising interest rates, exacerbated by the energy crisis following the Russian military intervention in Ukraine.
The government expects growth to slow in 2023 to 1.3% of gross domestic product (GDP) from 6.5% at the end of this year, a figure that some analysts classify as optimistic. The same doubts arise with regard to the inflation predicted by the socialist executive branch for 2023 of the order of 4%, after this year it was estimated at 7.4%.
The government’s budget proposal also reflects the goal of maintaining a fiscal consolidation trajectory that sees the deficit fall from 1.9% this year to 0.9% in 2023, and the debt cut to 110% of GDP next year.
More controversial has been the strategy the executive is pursuing with respect to the pension increase, assuming a one-time emergency benefit of 50% this month, but lowering the increase percentage until 2023 with a welfare sustainability argument. .
Pensions up to 886 euros will increase by 4.43%, pensions between 886 and 2659 euros will increase by 4.07%, and the rest (which are subject to renewal taking into account the current legal formula) will increase by 3%. 53%.
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Updated October 26, 2022 | 15:19
“Looking to the present without losing sight of the future”: António Costa starts the debate on OE2023 in Parliament
António Costa said it was necessary to “stand shoulder to shoulder” and “respond to the emergency of the present” at a time when the war is on and inflation continues to rise. The Prime Minister emphasizes that “it is necessary to react to the present, taking care of the future.”
“It is necessary to ensure that every year the country grows above the European Union average,” Costa repeated, emphasizing the goal of growth of 1% above the European average.