As the topic of the budget deficit returns to the forefront, former Economy Minister António Costa Silva stated on Sunday that maintaining a small deficit is not problematic, provided public accounts remain under control.
“What is the purpose of having a budget surplus sine die? A surplus like Germany had, which is now in a difficult situation? I think we need to respect and balance public accounts, but also consider what we can safeguard in terms of investment, development, and economic support and stimulus,” said the former official in an interview with Jornal de Negócios and Antena 1, emphasizing that “a small deficit or a minor budget balance, for me, is not the issue“.
He cautioned, however: “We cannot let it spiral out of control and neglect to exercise control over public accounts“.
The former Economy Minister also mentioned that the previous government could have used a small portion of the deficit to negotiate pay raises for some public sector careers, as is currently happening.
Finance Minister Joaquim Miranda Sarmento stated on Friday that current information indicates Portugal is likely to see surpluses “in the coming years”. These comments followed a reversal by Economy Minister Pedro Reis.
Nazaré da Costa Cabral, President of the Public Finance Council (CFP), warned on Thursday that the “mini-cycle of budget surpluses may be over,” indicating there is no room for further measures without identifying compensatory policies.
