The Social-Democratic Party (PSD) will follow an ‘anti-austerity’ program, which means further tax reductions, wage hikes in the public sector, and the increase in the minimum wage.
The budget deficit will amount to 3.3%, calculated with the ESA 2010 methodology. This exceeds the 3% limit imposed by the EU. The increase in the budget deficit will be related to higher costs, declining revenues, and the decrease in the economic growth.
The Government estimated a GDP growth of 5.2% when making the state budget for 2017. However, Lambertson said that the growth rate would slow down to 3.6%. (Source: business-review.eu)
