Government not heeding the IMF

Page created: Friday, 7 August 2015 14:25 GMT

Deficit  Fiscal system  IMF

The International Monetary Fund’s warning in its survey mission report of the potential need for additional measures to bring the state deficit in below 3% did not cut any ice with the Portuguese government in a reaction late Thursday.

“The government reaffirms its objective of a deficit below 3% and complied with without any need for additional measures. The IMF itself has already lowered its 2015 forecast from 3.4% (in the first mission report) to 3.2% and thus approaching the target set by the government” a source told Lusa.

The same source also stressed that the IMF’s report was above all based on the information in effect at the time of the mission which ran between June 4 and 12.

This follows the IMF’s appeal to the government to show caution in its reversal of austerity period revenue raising taxes and surcharges with the fund specifically identifying the potential need to “delay or partially cancel” plans to eliminate the IRS surcharge.

Furthermore, the Assistant Minister for Regional Development, Miguel Poiares Maduro was singing from the same sheet in comments made to journalists on Thursday evening saying that the IMF report had nothing new in it, the government was on track and the IMF had “moved closer to the position of the government and not the contrary.”