The Government today delivers to the Assembly of the Republic the proposal for the State Budget for 2023 (OE2023), which should forecast a growth of 1.3% and a deficit of 0.9% of GDP in the next year.
After an extraordinary Council of Ministers on Tuesday, the Government presented the macroeconomic scenario on which the proposal is based on Friday to the parties. With the agreement in the social consultation, on Sunday, the document was approved by the Council of Ministers on the same day.
The OE 2023 should be delivered to the Assembly of the Republic at 1:00 pm today, according to a note from the Ministry of Finance.
According to information shared between the executive and the parties, advanced by some deputies, the OE2023 proposal foresees a growth in the Gross Domestic Product (GDP) of 1.3% in 2023 and an inflation rate of 7.4% this year and 4% next.
According to the parties, the deficit target of 1.9% of GDP expected for 2022 should also be maintained, but the Government wants a reduction to 0.9% in 2023, the year in which it expects a weight of public debt of 110% of GDP.
Among the main measures that should be included in the budget proposal are a regular update of the income levels of the IRS in 2023 based on the salary appreciation of 5.1%, aiming to ensure the fiscal neutrality of the salary updates, and a selective reduction of the IRC.
In September, the executive announced that pensions up to 886 euros will increase by 4.43%, while those with a value between 886 and 2,659 euros will increase by 4.07%, and the rest (which would be subject to updating taking into account the the legal formula in force) will increase by 3.53%.
The OE2023 will be discussed in general in parliament on the 26th and 27th of October, with the final global vote on the diploma of the Government proposal scheduled for November 25th.
Source https://www.lusa.pt/
