The controversy surrounding the State accounts continues to be a topic of discussion. On Tuesday, the Minister of Finance, Joaquim Miranda Sarmento, accounted for 2.5 billion euros in total expenditure carried out by the previous government at the beginning of the year, which was not included in the State Budget for 2024 (OE2024).

This is yet another 'attack' by Miranda Sarmento on the previous executive of António Costa, after having already stated last week that he had found "worrying situations" in the public accounts. 

Minister renews accusations (and reveals more accounts) 

Now, in a speech at the annual conference of the Specialized Credit Associations (ASFAC), Joaquim Miranda Sarmento criticized the previous executive (PS) for expenses approved at the beginning of the year, some of which were after the legislative elections of March 10, which resulted in the victory of the AD coalition (PSD/CDS-PP/PPM).

"We are talking about 2.5 billion euros that were not in the document that the Assembly of the Republic approved in the State Budget," he said.

In just three months, almost half of the reserve that existed for the entire year has already been used

The minister stated that the previous government approved extraordinary expenses in the amount of 1.080 billion euros, with 960 million euros being approved after the legislative elections of March 10.

The minister once again defended that the budgetary situation that the current executive found is "different from the one that had been announced".

Miranda Sarmento said that the measures approved by the previous government at the beginning of the year had "an impact, especially at the level of the provisional reserve", which exists in the Ministry of Finance and is normally used in the second half of the year to meet extraordinary or new expenses.

"The fact is that, in just three months, almost half of the reserve that existed for the entire year has already been used," he criticized.

The Minister of Finance once again accused the previous government of approving 116 Council of Ministers resolutions, 42 of which were not budgeted.

"We are talking about measures that, together, have a cost of 1.2 billion euros. That is, measures that were not foreseen and that will have to be paid for through the budgetary reserve" which he says is "quite undercapitalized".

Prime Minister: "We are not scared of that, but we will not hide it"

Also on Tuesday, the Prime Minister, Luís Montenegro, stated that the Government is not scared of the situation of the public accounts and will not reverse objectives and commitments, although reiterating that he found a different situation from the one that had been disclosed.

When asked if there is a lack of reserves in terms of public accounts and if the Government has found the devil, he replied: "There is no point in inventing a devil in anyone's head".

"Regarding the financial situation, I have already had the opportunity to say and I can reiterate: what is happening is the following: at the end of the first quarter of the year, we have a deficit in the public accounts. And I have already had the opportunity to state that our objective is to reach the end of the year with positive public accounts", he added.

"My conviction and that of the Government is that we will achieve this objective. Therefore, we are not scared of that, but we will not hide a reality that is objective", concluded the Prime Minister.

Will "greater effort, rigor and budgetary control" be necessary?

The Minister of Finance also guaranteed that this scenario does not mean that there is no capacity to fulfill what the Government has promised, but that "greater effort, rigor and budgetary control" will be necessary, and he maintains the "ambition of ending the year with a positive budgetary balance".

"Contrary to what some have said, I am not saying this to exempt the Government from fulfilling its commitments. That is not the issue. This data must be known because it is factual", he said.

Miranda Sarmento guaranteed that, "despite the context of instability and uncertainty, the action of this Government will continue to be guided by reformism, by the commitment to growth and innovation, and by the improvement of salaries".

Last week, the Minister of Finance and his predecessor in the portfolio, Fernando Medina, exchanged accusations due to the budget execution data (data in treasury logic) for the first quarter.

Leia Também: Government says it has detected "worrying situations" in public accounts (Portuguese version)