The Prime Minister signed the proposed 2024 state budget, which was presented by the government to the Assembly of the Republic on Tuesday, arguing that it will boost revenues, strengthen investments and protect the future.
“I have just signed the law on the state budget for 2024. A budget that strengthens revenues, strengthens investments and protects the future,” António Costa wrote on his account on the social network X (formerly Twitter).
I just signed the 2024 state budget bill. A budget that strengthens revenues, strengthens investments and protects the future.#OE2024 pic.twitter.com/IZf11DB4yC
– António Costa (@antoniocostapm) October 10, 2023
The 2024 state budget proposal, approved last Sunday in the extraordinary Council of Ministers, will be discussed in general on the 30th and 31st in the General Assembly of the Republic, with a final global vote scheduled for November 29.
In the early afternoon, Finance Minister Fernando Medina will present at a press conference the proposed State Budget for 2023, a diploma whose macroeconomic scenario was presented on Friday to parties with parliamentary representation.
Regarding the macroeconomic scenario of the 2024 budget proposal, it points to a decline in economic growth to a value of about 1.5%, a decline in the debt ratio to less than 100% of gross domestic product (GDP) , for example a budget balance (after a new surplus at the end of this year) and an inflation rate of around 3%.
On the tax front, the government proposal should provide for a reduction in the IRS of between 500 and 1 billion euros, with a special focus on younger taxpayers and in the first five brackets.
In the social field, the government signed an agreement on Saturday with the General Trade Union of Workers (UGT) and with the employers’ organizations Confederation of Peasants of Portugal (CAP), Confederation of Trade and Services of Portugal (CCP) and Confederation of Tourism of Portugal (CTP). ) a strengthening of the income improvement agreement.
The value of the national minimum wage will rise to 820 euros for next year, an increase that António Costa considered “the largest annual increase” ever.
António Costa also stated that the salary update reference for 2024 is also revised in this agreement, increasing to 5%, “now higher than the commitment made for this year” (4.85%).
In addition to the measures already taken in September to increase bonuses and stabilize the value of home loans over the next two years, the government is preparing new measures in the state budget, namely direct support for rental and housing loans when interest rate efforts to 35% and 55% and, ultimately, a reduction in construction VAT.
This is the tenth budget proposal presented by António Costa’s executives, one of which failed, the first for 2022, in October 2021, and which led to the end of the so-called ‘Geringonça’ – socialist minority governments supported in parliament by the Bloc Left and PEV.
This lead led to a political crisis in the country and to the holding of early parliamentary elections in January last year, which the PS won with an absolute majority. The second Budget proposal for 2022 was subsequently approved in May last year.
Source: DN
