Government to deliver 2023 budget to parliament
The 2023 budget will be debated in parliament on October 26 and 27, with the final overall vote on the government's proposal scheduled for November 25.
Portugal’s government delivers the draft budget for 2023 to Parliament on Monday, which is expected to forecast growth of 1.3% and a deficit of 0.9% of GDP next year.
After an extraordinary cabinet meeting on Tuesday, the government presented the parties with the macroeconomic scenario on which the proposal is based on Friday. With the agreement in social dialogue on Sunday, the document was approved in the Council of Ministers on the same day.
The 2023 budget should be delivered to parliament at 1 pm this Monday, according to a note from the finance ministry.
According to information shared among the government and parties and disclosed by some members, the 2023 budget proposal provides for gross domestic product (GDP) growth of 1.3% in 2023 and an inflation rate of 7.4% this year and 4% next year.
According to the parties, the deficit target of 1.9% of GDP set for 2022 should also be maintained, but the government wants a reduction to 0.9% in 2023, a year in which it forecasts a public debt of 110% of GDP.
Among the main measures to be included in the budget proposal are a regular update of personal income tax brackets in 2023 based on the 5.1% salary increase, aiming to ensure the fiscal neutrality of salary updates, and a selective reduction of the corporate income tax.
In September, the government announced that pensions up to €886 would increase by 4.43%, while those between €886 and €2,659 would rise by 4.07%, and the remaining pensions (which would be subject to the update taking into account the legal formula in force) will increase by 3.53%.
The 2023 budget will be debated in parliament on October 26 and 27, with the final overall vote on the government’s proposal scheduled for November 25.