Government awaits Parliament’s authorization on proposed €10 bn debt limit
State Budget 2019 predicts a near nil deficit, but the Government has asked the Parliament for authorization to reach a maximum of €10bn of indebtedness for the next year.
The Government is asking for permission to reach an indebtedness amount of €10bn, despite its target of reaching a 0.2% deficit for 2019.
“In order to face the current financing needs for the execution of the state budget, including the area of services and funds with administrative and financial autonomy from the state, the Government is authorized to increase global direct net indebtedness up to a maximum amount of 10 billion euros”, the state’s proposal reads.
If that limit is exceeded, the Government will have to go back to the Parliament with an Amending budget, but with such a high proposal on the table, it is highly unlikely that it will come to such terms.
This financing level also serves as a reference value for IGCP to take debt to the market in the name of the Portuguese Republic.
