The Ministry of Finance states that Central Administration expenditure will grow by 4.1% in 2025, if the Public Debt Management Program (i.e., repayments and issuance of Public Debt) is not taken into account.
In a statement, Miranda Sarmento’s office added that “tax revenue will grow next year (mitigated by the government’s IRS reduction proposals), also around the same value“.
The Government also highlights that the Multiannual Public Expenditure Framework “is built on the basis of effective expenditure, but also on ineffective expenditure (financial assets and liabilities) and is non-consolidated (it does not eliminate budgetary transfers between entities and sectors)”. The clarification from the Ministry of Finance comes after the document was delivered to MPs. According to the Multiannual Public Expenditure Framework, the ceiling foreseen by the Executive for the increase in expenditure in 2025 represents an acceleration compared to the limits set for this year: State and Social Security spending could rise by up to 10.8% compared to the maximum expenditure values forecast for this year.
The document allows for increased spending next year, but not equally in all areas. Finance Minister Joaquim Miranda Sarmento is putting the brakes on sectors such as healthcare, where spending in 2025 will rise by a maximum of 3.5%, below the maximum growth set for this year, which was 4.3%.
Source: www.jornaldenegocios.pt
