The controversy broke out on Thursday and a 'guerrilla' was installed between the current and former finance ministers: the former denounces having received negative inheritances from the previous Executive, while the latter defends himself and counterattacks, accusing the Finance team of "technical inadequacy" or "political falsehood".

After all, what is at stake? Let's go by parts and start, right away, by the accusations of the Minister of Finance, Joaquim Miranda Sarmento.

Miranda Sarmento accuses: "Budgetary situation is much worse"

It all started when Miranda Sarmento estimated that the deficit registered until the end of the first quarter of this year was around 600 million euros and accused the previous Government of having increased spending after the last legislative elections.

"The budgetary situation is much worse than the previous Government had announced", declared Joaquim Miranda Sarmento at the end of the Council of Ministers meeting, saying that to the 300 million euros of deficit registered in the latest synthesis of budget execution, another 300 million euros must be added as a result of the increase in debts to suppliers.

According to the head of the Finance portfolio, some of the increases in expenditure verified were made after the early legislative elections of March 10th.

According to the most recent data from the General Directorate of the Budget (DGO), the State went from a surplus of 1,177 million euros to a deficit of 259 million euros until March, which had not been seen since December 2022.

Medina counterattacks: "Deep unpreparedness and technical inadequacy or falsehood"

A few hours later, the former Minister of Finance Fernando Medina reacted and refused that Portugal presents a budgetary problem and accused the current holder of the portfolio, Miranda Sarmento, of "technical inadequacy" or, alternatively, "political falsehood".

Before journalists, Fernando Medina refused that Portugal presents a budgetary problem and insisted that, in a scenario of unchanging policies, the country will register a surplus of around 0.7% at the end of the year.

"They were regrettable and worrying statements [by the current Minister of State and Finance] that reveal one of two things: Either deep unpreparedness and technical inadequacy or falsehood", political, countered Fernando Medina, having by his side the former Deputy Secretary of State to the Prime Minister, António Mendonça Mendes, who, during the next socialist executive, was also Secretary of State for Tax Administration.

Fernando Medina mentioned that, on April 1st, he informed "rigorously, with public and non-public data" the new Finance team, led by Miranda Sarmento, about the country's financial situation.

"I then transmitted that the country, in unchanging policies, would have a surplus of 0.7% in 2024 - an estimate that the new Minister of Finance assumed to be around 0.3% two weeks ago", he pointed out.

The former Minister of Finance alleged that the recent data from the General Directorate of the Budget regarding the synthesis of budget execution until March were presented in public accounting - cash values that the State has in each quarter -, when the criterion that is relevant for Brussels is that of national accounting.

"Basically, [Miranda Sarmento] uses a falsehood, he tries to compare and use the data in public accounting to infer from there that the country has a problem of a budgetary nature. But the country does not have any problem of a budgetary nature", stressed Fernando Medina.

At the end of the press conference, the former Minister of Finance regretted that Joaquim Miranda Sarmento had entered "the political guerrilla" around a sensitive area such as the budget, and left him a warning, as well as to the PSD in general.

"If the PSD thinks that it will gain something with this type of guerrilla with me and with the Finance team that preceded it, they are deeply mistaken. Also because there is one thing that is going to happen to them: The DGO bulletins will continue to be released and, at one point, will present high surpluses", he warned.

Then, he addressed the journalists: "I hope that at that time they will remember and ask the Minister of Finance about that deficit in the first quarter" of 2024.

Asked if he is available to give explanations in Parliament about the country's budgetary situation, Fernando Medina said yes and pointed out that he will soon be at the Budget and Finance Committee to talk about the debt reduction process. "If [the committee] wants to hear in the same session, I'll be there. I am perfectly aware of what I did", he stressed.

Rectifying Budget? Government decides "in the coming months"

The Government will assess an>