Meteorologia

  • 18 NOVEMBER 2024
Tempo
18º
MIN 13º MÁX 19º

MPs hear today from former minister Fernando Medina about debt reduction

The former Minister of Finance and current PS deputy Fernando Medina is being heard today in parliament about the reduction of the public debt in 2023, after the Budgetary Support Technical Unit considered that the decrease was "artificial".

MPs hear today from former minister Fernando Medina about debt reduction
Notícias ao Minuto

06:21 - 14/05/24 por Lusa

Economia Fernando Medina

This hearing in the Budget, Finance and Public Administration Committee was requested by the CDS-PP and had the votes in favor of all the parliamentary groups present, including the PS.

The intention of moving forward with this request had been announced the previous week by the leader of the parliamentary bench of the centrists, Paulo Núncio, who accused the previous government, in which Fernando Medina was Minister of Finance, of having made an "artificial reduction" of the debt with "pension money".

At the time, Paulo Núncio said that the Budgetary Support Technical Unit (UTAO) "warned that the debt reduction carried out by the socialist government in 2023 was merely artificial" and that "it was only done at the expense of the money from the Social Security Financial Stabilization Fund and the General Retirement Fund".

In a report on market conditions, public debt and external debt up to March, released on April 10, UTAO considers that the substantial increase in the consolidation factors of the public debt in 2023 results from the budget surpluses and the "deliberate search for applications in securities", indicating that this increase in applications of organic units in debt instruments will result in some cases "from mere management options", with there also being cases in which "the financial management options were conditioned by government guidelines".

The document from the body led by Rui Baleira classifies the reduction of the public debt as "artificial".

The public debt ratio was set at 99.1% of the Gross Domestic Product (GDP) in 2023 and in nominal terms decreased by 9.3 billion euros compared to the previous year, to 263.1 billion euros.

Read Also: 'Guerrilla' in the accounts? What led Sarmento and Medina to exchange criticism (Portuguese version)

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