Posted on October 16, 2018 at 8:12
LISBON, Oct 16 (Reuters) – Portugal's socialist government promised on Tuesday to reach the lowest budget deficit in its history in 2019 while increasing salaries for civil servants and providing transportation aid for families.
In its draft budget, the government set itself the goal of achieving a deficit representing 0.2% of GDP, compared to the 0.7% expected this year, and hopes to achieve economic growth of 2.2%, that is, slightly less than 2.2%. this year.
It also expects the unemployment rate to reach 6.3% next year, compared to 6.9% in 2018.
“This is a good budget that follows the path we have charted so far, which is more growth, more jobs and more equality,” Prime Minister Antonio Costa said on Twitter.
The Portuguese economy has rebounded strongly during the past three years and the Socialists came to power after the debt crisis in 2011, thanks to a recovery in exports, increased foreign investment, and a rise in tourism and real estate.
The government's draft budget for 2019 plans to provide transportation subsidies to families living in the Lisbon and Porto regions, which represent nearly half of the population in Portugal.
The project also plans to unlock career advancement for civil servants for the first time since 2009, with salary increases and promotions at stake. Pensions are also expected to grow more than inflation in 2019.
Portugal's debt-to-GDP ratio is expected to fall to 118.5% next year, compared to 121.2% in 2018, the government's draft budget shows.
Finance Minister Mario Centeno presented the proposed budget to Parliament before midnight on Monday. He is scheduled to hold a press conference on Tuesday morning to provide more details.
Moody's announced on Friday that it had raised Portugal's credit rating to 'Baa3' with a stable outlook.
Supporting growth is strengthening and the external debt structure is improving, making the Portuguese economy more resilient, the rating agency confirms.
(Axel Pogue and Sergio Goncalves, Blandin Hinault for the French Service, Editing by Patrick Vignal)
