In the final assessment of the state budget proposal for (OE2022) presented to the deputies today, UTAO states that “by agreement between the government and several political parties of the AR [Assembleia da República] concluded on April 22, 2022 with the Strategic Fiscal Policy Framework.”
“The approval of a series of amendments to the LEO that day completed the removal of a multi-year limitation on annual budget laws.”
Technicians backing MPs believe that the Stability Program (PE) and the Multi-Year Public Expenditure Program (QPDP) no longer serve any significant purpose, arguing that medium-term programming tools have lost their disciplinary role of myopia.
According to UTAO, this vision completely dominates the development of state budget proposals.
“Recent history has discredited sovereign authorities’ respect for the medium-term budget constraint. The derogations provided for by law in 2020 are not enough. […]“The government and parliament have gone even further by breaking their commitment to the strategic package and the multi-year spending rule,” he says.
For techies, “it’s clear that EPs and QPDPs will continue to be issued to be dropped by the political authorities at the first opportunity.”
“Hopefully lenders will not be disappointed again with the quality of Portuguese institutions,” they add.
AAT // JNM
Lusa/The End
