In statements made to journalists at the PS headquarters in Lisbon, PS official and former Secretary of State for Fiscal Affairs, António Mendonça Mendes, defended the macroeconomic scenario outlined in the PS electoral program, which anticipates a budget deficit by 2026. He argued that the projections are based on forecasts from both national and international institutions.
Regarding criticisms made on Sunday by Social Democrat Manuel Castro Almeida, who labeled the PS electoral program as a “recipe for disaster” that would lead Portugal to a renewed deficit and increased public debt, Mendonça Mendes emphasized that the minister had “the obligation to know” the impact of loans financing PRR projects on the budget balance, accusing him of ignoring this to “attack the PS.”
Mendonça Mendes further explained that for the “PRR loans not to impact” the budget balance, the “projects implemented and funded by the PRR must not materialize.”
“This would mean that, in fact, the PRR did not accelerate and the PRR will not be fulfilled,” stated the socialist representative.
The former government official pointed out that the “Government’s medium-term program presented to the European Commission explicitly states” that the effect of the PRR loan “is temporary and dissipates the following year.”
“I think the comment I can make on Castro Almeida’s statement is that when desperation begins, seriousness ends. And this was a minister who had an obligation to know, because he is in charge of the PRR,” he remarked.
Mendonça Mendes challenged the AD to conduct a budget exercise “as transparent and credible as the one the PS Secretary-General wanted for this electoral program” and reiterated that the socialists presented their proposals based on the margin announced by the Government for lowering the IRC tax rate.
“It amounts to 1.744 billion euros, divided between tax measures of 730 million euros; benefits and support amounting to 270 million euros, housing, the National Health Service, and other areas costing 744 million euros,” detailed Mendonça Mendes.
The socialist expressed surprise that the coalition led by Luís Montenegro had chosen to proceed to electoral debates without presenting their electoral program.
Mendonça Mendes also accused the Government of deceiving the Portuguese people when it adjusted withholding taxes under IRS last year, adding that “pensioners are the most affected by the fiscal illusionist tricks performed by the Government.”
According to the official, the PS’s electoral program is an “update of the previous one” and stated that the “budget balance trajectory was exactly the same” as previously presented.
