The Portuguese government announced new measures on Friday to help households cope with the inflation crisis, including applying a “zero rate” VAT on a set of staple foods. “We hope that this measure translates into a reduction” and “price stability,” said Finance Minister Fernando Medina, adding that ongoing negotiations with the food production and distribution sectors should conclude next week.
The socialist executive has also decided to increase social aid for the most modest families, up to 30 euros per month and aid of 15 euros per child. This measure, which will affect more than a million families, will begin to be paid from April, said the Minister of Labor, Ana Mendes Godinho. These provisions also include an “extraordinary” increase of 1% in the salaries of some 740,000 civil servants, as well as an increase in their food bonus.
An additional aid allocation amounting to 2,500 million euros
The Government will finance these measures thanks to the budget margin released last year, with a public deficit that has been reduced to 0.4% of GDP when the initial objective was to reduce it to 1.9%, after an imbalance of 2.9% in 2021″. The accounts in order allow us to take measures in favor of families”, with an endowment of additional aid that amounts to 2,500 million euros, welcomed the Minister of Finance.
Inflation in Portugal has started to slow since reaching 10.1% last October, its highest level in 30 years. Set at 7.8% for all of last year, the price rise should be limited this year to 4% according to the government, or 5.8% according to the Bank of Portugal.
Source: BFM TV
