In the final assessment of the 2024 state budget proposal, released this Monday, UTAO says that revenue projections are incorrect, noting that “in the area of direct taxes, signs of underbudgeting were found in all the smallest taxes (all except IRS and IRC)”.
It also says, with regard to indirect taxes, that there are also signs of underbudgeting in the ISP – Tax on Petroleum Products forecast (both in 2024 and 2023) “as the tax relief measures for this tax in the inflation package appear to be overestimated” .
UTAO therefore estimates that direct tax revenues will be 782 million euros more this year than the government predicts and that this will be 681 million euros more in 2024.
“The difference between the Ministry of Finance’s forecasts and the UTAO estimate indicates an undervaluation of direct tax revenues of 782 million euros in 2023 and 681 million euros in 2024,” the report said.
According to UTAO, the analysis of the revenue forecasts for the 2023-2024 biennium indicates that there is “too conservative a perspective in terms of the budget and the contributing component”, that is to say, the estimate is lower than the revenue generated by the State can be collected.
The IRS and IRC forecasts “appear to be consistent with their macroeconomic fundamentals and policies.”
Last Tuesday, the Prime Minister submitted his resignation after the lawsuit linking him to the lithium and hydrogen sectors.
In a communication to the country, the President of the Republic, Marcelo Rebelo de Sousa, announced on Thursday that he will dissolve Parliament and call early parliamentary elections, but postponed the formal process of dismissing the government by decree to allow approval and to join the government. strength of the state budget for 2024.
“The approval of the budget will allow us to meet the expectations of many Portuguese and monitor the implementation of the Recovery and Resilience Plan (PRR), which will not and cannot stop when the government becomes a management government or later with the dissolution of the government. Assembly of the Republic,” he said.
The UTAO report released today makes no reference to the political crisis and its impact on public finances.
Source: DN
