HomeEconomyMedina cuts deficit as in 2022, but pledges another 1,320 million euros...

Medina cuts deficit as in 2022, but pledges another 1,320 million euros to Civil Service in 2023

The government deficit is expected to fall from 1.9% of gross domestic product (GDP) in 2022 to 0.9% of GDP in 2023, but this fiscal tightening will allow for “wage increases and other valuations in public administration”. whose annual expenditure is about 1320 million euros, refers to the proposed state budget for 2023 (OE2023), which will be delivered to the Assembly of the Republic this Monday.

According to the document, also presented at a press conference by Minister Fernando Medina, the deficit reduction next year (by 1 percentage point) – a period likely to be affected by a prolongation and worsening of the crisis – will repeat this year. deficit reduction to be achieved (from 2.9% to 1.9%). A way to get more “confidence” in the national public accounts, according to the minister.

One of the groups that has lost the most in recent years from the austerity measures implemented since 2010 and the time of the Troika is civil servants.

After a 0.9% increase in 2022, an update completely offset by inflation expected to reach 7.4%, workers are pushing for measures to address, for example, this year’s strong loss of purchasing power and accumulated losses from the past. to resolve.

The cabinet says that this SO2023 will benefit “some 760,000 civil servants”, and the budgetary costs of the measures for this group of professionals in 2023 will be around the aforementioned 1320 million euros (measured in terms of an increase in the wage bill ).

“The update of salaries in public administrations, with a multi-year horizon that provides predictability in the annual update of salaries and the valorisation of careers during the current legislature,” says the OE proposal.

“By 2023, all employees will have at least an increase of EUR 52.11 per month in their base salaries, also guaranteeing an increase of at least 2%. This effort in itself guarantees an average salary update of 3.6% next year.”

“In addition, there are career opportunities and promotions, as well as the improvement of the careers of senior technician, technical assistant and operational assistant, which ensures sufficient differentiation between careers, and the increase of the remuneration base of the public administration to 761.58 euros”.

In addition to this update, the OE also refers to the effect of “employees’ career development (promotions and progressions)”.

Overall, these initiatives result in a 5.1% increase in the average income of employees in public positions. [aumento da massa salarial] and a budgetary impact of EUR 1320 million”.

This increase is the result of: “905 million euros for updating the salary base and other compensation valuations; 338 million euros for advancement and promotions (mandatory and due to career changes); 77 million euros for updating the meal allowance,” explains Medina from.

Luís Reis Ribeiro is a journalist for Dinheiro Vivo

Author: Luis Reis Ribeiro

Source: DN

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