Government sees deficit between 7% and 7.5% in 2020, 4% in 2021

Portugal’s government is presenting the broad outlines of the State Budget for 2021 to the political parties. It has not yet been revealed what will happen to GDP, but deficit figures have already been released. It could be above the 7% that had been pointed out by João Leão.

According to RTP, which cites party sources, the macroeconomic scenario presented by the Executive points to a deficit of 7% to 7.5% this year. In other words, it could be above what had been pointed out by the Finance Minister in July.

After this deficit, explained by the macroeconomic impact of the new coronavirus pandemic, 2021 will again tackle an imbalance in public accounts, albeit smaller.

Also, according to RTP, in 2021 the deficit is expected to amount to 4% of GDP, and it is not yet known what the government’s forecast is in the proposed State Budget for next year.

The government’s proposal is expected to be approved next Thursday in the Council of Ministers, and the document should be delivered to Parliament on October 12.