“That year, Madeira recorded some of its best economic performances ever, with record values in many of the main macroeconomic indicators,” stated the Regional Secretary of Finance, Duarte Freitas, in the plenary session of the Legislative Assembly in Funchal.
The official noted that although the 2023 account was still marked by the process of recovery from the Covid-19 pandemic, as well as the impacts of the war in Ukraine and issues in the international supply chain, it showed actual revenue of 1,666.2 million euros and total expenditure of 1,623.9 million euros.
“It is important to highlight that this increase in revenue occurs in the context of continued tax reduction, with successive decreases in tax rates on our families and businesses, implemented by the Regional Government since 2016,” emphasized Duarte Freitas.
The 2023 account of the Madeira Autonomous Region was approved with votes in favor from the PSD/CDS-PP majority (parties supporting the Regional Government) and the IL, with abstention from Chega and votes against from JPP and PS.
During the debate, the two largest opposition parties – JPP, with 11 deputies, and PS, with eight representatives – criticized the executive for repeatedly refusing to adopt their proposals for tax reduction, despite revenue surpassing expenditure that year.
JPP deputy Paulo Alves stated that the increase in revenue continues to have no impact on improving the cost of living for Madeirans, considering that the poverty risk rate in the region remains one of the highest in the country.
Vitor Freitas, from the PS, recalled that the party submitted proposals that would have a budgetary impact of 87 million euros but were rejected by the PSD/CDS-PP majority, despite the executive having raised 191 million euros in taxes above the forecast.
Also from the PS, Gonçalo Leite Velho highlighted various investments that were left unexecuted in several sectors in 2023, while Chega deputy Miguel Castro warned about the increase in debts and losses of public companies that year, notably the Madeira Health Service (Sesaram), which he said accumulated an “astronomical debt.”
In response, the regional secretary explained that “there is always a deviation between what is budgeted and its execution,” arguing that international supply chain issues, labor shortages, and rising interest rates, among other factors, induced an inflationary scenario that hindered the execution of investments.
“Reality surprises us, but we must have the competence to adapt to situations,” he said.
Gonçalo Maia Camelo, the sole deputy from the IL, highlighted the positive indicators expressed in the 2023 regional account but wanted to know the amount collected by the executive through the recovery of illegal aids granted to companies in the Madeira Free Trade Zone under the III Regime, as determined by the European Commission.
The official clarified that in 2023, the Corporate Income Tax (IRC) recorded a “very favorable performance,” with 111 million euros, of which about 36 million euros pertained to the recovery of those aids.
The PSD/CDS-PP majority benches, on their part, highlighted the good performance of the region’s public finances, with social democrat Brício Araújo stressing that “the good numbers cannot be disregarded” and demonstrate “the rigor, prudence, and firmness” of governance, while centrist sole deputy Sara Madalena criticized the “rambling” of the opposition parties, reminding that mathematics is an exact science.
In presenting the document, Duarte Freitas highlighted that the 2023 account received a generally favorable opinion from the Court of Accounts, with only nine recommendations, emphasizing that the total of actual revenue and expenditure that year showed a total net balance of 42.3 million euros, and public debt fell by 29 million euros.
“The updated data show that by the end of 2023, the ratio of the region’s public debt to GDP [Gross Domestic Product] stood at 71.6% – 8.7 percentage points less than in 2022 – demonstrating a more solid financial position compared to the 97.7% recorded nationally,” he clarified.
Duarte Freitas highlighted that the regional GDP approached seven billion euros in 2023, up 4.5% compared to the previous year, while the unemployment rate fell to 6.0%, 0.8 percentage points less than in 2022, and the employed population reached the highest ever level: 129.5 thousand people.
According to the official, after three consecutive years of negative balances, the region obtained a financing capacity of 25.3 million euros, a situation he described as “a remarkable progress compared to the deficit of 145 million recorded in 2022.”