Portugal’s budget for 2023 has been adopted
2022.11.25 10:35
Portugal’s budget for 2023 has been adopted
Budrigannews.com – The majority Socialist government’s budget for 2023 was approved by Portugal’s parliament on Friday. It aims to further reduce the deficit and debt despite the expected sharp slowdown in economic growth.
In the 230-seat house, only 120 Socialist lawmakers supported the bill at its final reading.All other parties opposed the motion, and two parties with one seat each abstained.
The budget projects that growth will slow to just 1.3% in 2023, down from 6.5% this year. Private consumption, which accounts for two-thirds of GDP, will almost stagnate as families struggle with high food and energy costs and rising interest rates.
Given the foreseeable severe slowdown or even recession in some of its major European trading partners, export growth is only anticipated to be 3.7 percent, which is significantly lower than the 18.1 percent growth this year.
The government intends to reduce the budget deficit to 0.9 percent of GDP next year, down from 1.9 percent in 2022, and public debt should decrease to 110.8% of GDP, down from 115% in 2022.
The government has argued that the budget deficit and public debt must be further reduced at a time when the European Central Bank is raising interest rates to combat inflation. The opposition has accused the government of being overzealous with the deficit and not doing enough to assist the Portuguese.
