Miranda Sarmento says that public accounts “are much worse” | public finances

The Minister of Finance accused the former Government of leaving a deficit of almost 600 million euros, which resulted from measures taken after the legislative elections on March 10, in an amount estimated by the government official at 950 million euros. “To the public accounts are quite worse” than what was announced by the previous executive, said Joaquim Miranda Sarmento, assuming that the situation is demanding and guaranteeing that the Democratic Alliance will “comply with the electoral program”. Fernando Medina, his predecessor, meanwhile scheduled a reaction to these statements for 2:45 pm.

In the press conference that followed the Council of Ministers, Miranda Sarmento stated that, in addition to the almost 300 million deficit recorded in March this year, there is still 300 million in debt to suppliers – which has not yet been paid – and, therefore, the deficit amounts to 600 million euros. According to data from the General Directorate of Budget, the Government went from a surplus of 1.2 billion euros, recorded in January, to a deficit of almost 300 million euros.

The minister declares that, “adding to the chaos we experience in many public services”, “public accounts are much worse” than announced by António Costa’s government. Regarding the possibility of Luís Montenegro’s Government presenting an Amending Budget, Miranda Sarmento says that the topic has not yet been discussed but “will be the subject of a decision in the coming months”, depending on what the executive finds.

The executive headed by António Costa approved, in the first quarter, exceptional measures worth 1,080 million euros, “of which, 950 million already after March 10th”, said the minister.

According to the Minister of Finance, since António Costa’s resignation on November 7 last year, 108 Council of Ministers resolutions have been approved. Miranda Sarmento highlighted three measures that were approved, of significant amount, but which have no budgetary scope. They are: 100 million destined to support farmers in the Algarve and Alentejo in the fight against drought, 127 million for the purchase of vaccines against COVID-19 and 200 million for the recovery of the school park.

The current minister accuses the socialists of making promises, without “taking into account the corresponding financial amount” in the Budget and of “huge electoralism”, since, even after the elections were called, the Costa Government approved measures with a budgetary impact.

Fernando Medida’s successor also accuses the former executive of compromising the Ministry of Finance’s reserves. The provisional reserve, which is usually used from the summer onwards, consisting of 500 million euros, now only has 260 million euros available.

PSD speaks of “tremendous disloyalty and negligence” and asks Medina for explanations

In Parliament, the parliamentary leader of the PSD announced that his bench will request an urgent hearing of Fernando Medina in the Budget and Finance Committee to explain the fact that the previous Government had “approved a set of expenses in the order of one billion euros, some of them without budgetary allocation”, already after the legislative elections that dictated the defeat of the PS and the victory of the right-wing coalition between PSD, CDS and PPM.

The former Minister of Finance has already scheduled a reaction for 2:45 pm, to take place in Parliament.

“The Portuguese realize that this is tremendous disloyalty and negligence and that it calls into question what was expected to be the health of public finances”, said Hugo Soares in statements to journalists.

The social democrat accused António Costa’s previous executive of being “absolutely irresponsible” and of wanting to “mortgage the future of those who, legitimately, should govern next”.

Taking into account the case of the IRS reduction, in which the PS presented a proposal, which was approved, which reduces tax collection by around 350 million euros more than the current values ​​(roughly the same amount as the Government, but with a different distribution), and the abolition of tolls (which Chega will help the PS to approve this Thursday), the social democrat Hugo Soares also stated that the socialists are “in an unprecedented electoral zeal and of a irresponsibility to the fullest extent” by presenting bills in Parliament that lead to increased expenditure for the OE2024 on matters that the PS could have resolved in the last eight years.

Updated with more information