Despite talking about certain accounts, João Leão promised an Investment Budget. However, without the bazooka from Brussels, Leon gives little to the economy.
Not counting the money that comes from the bazooka in Brussels, John Lion barely boosts the economy, advances the Jornal de Negócios. The finance minister presented, this Tuesday, the State Budget for 2022 (OE2022).
The Government promises to boost the recovery of economic activity as early as next year, although the Budget is cautious, relying heavily on European Union funds for economic growth.
OE 2022 has more than 3 billion euros of financed expenditure through the Recovery and Resilience Program (PRR). This oxygen pump allows João Leão, as he himself said, to have a Budget that “recovers the economy”, but keeps “the right accounts”.
A stimulus package with a total value of about 4 billion euros. However, only a quarter of this amount will impact the deficit. The lion slice comes from the European bazooka background.
While reducing the Gross Domestic Product (GDP) deficit, cutting public debt and possibly reducing the structural deficit, the 2022 State Budget is a “Investment” budget, guarantees João Leão. By the way, the government official assures that it is the Budget that, during the last decade, has offered the greatest boost to the economy.
In 2022, the structural balance will register a slight improvement of 0.2 percentage points of GDP, writes Público. Considering this indicator, it cannot be said that this SO is expansionist. However, Leo suggests that another indicator needs to be looked at: a variation in public expenditure — disregarding the expenses of supporting families and businesses during the pandemic.
According to the accounts presented by OE2022, a 73.9% decrease (3,265 million euros) in subsidy expenditure.
“The PRR spending contributes to a macroeconomic boost, but it doesn’t aggravate the bills”, defends the minister, guaranteeing that the increase in investment expenses is covered by the increase in revenue from European funds.
Public expenditure — excluding measures to support families and companies — which is provided for in the State Budget represents, according to government calculations, a growth of around 8% compared to 2021, writes Público.