Tag Archives: PRR

PRR with Execution Below Expectations

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The Public Finance Council noted that, although Portugal eliminated its fiscal imbalance in 2023 with a surplus of 1.2% of GDP, the implementation of the Recovery and Resilience Plan (RRP) remains below expectations, with only 61.8% of the funds allocated.
Of the total, two-thirds were implemented only in 2023, reflecting a delayed increase in the allocation of resources, limiting the impact on public investment and economic growth.
This situation emphasizes the urgency of accelerating the implementation of the RRP to maximize planned investments and contribute to a sustainable economic recovery.

CFP Expects Deficit in 2026 After Temporary Balance

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CFP Expects Deficit in 2026 After Temporary Balance

The Public Finance Council (CFP) updated its projections and predicts that, after a balanced budget in 2025, the country could return to a deficit of around 1% of GDP in 2026, due to ongoing spending and commitments made throughout the legislature.

The CFP emphasizes that these projections do not yet consider the effects of meeting NATO targets or possible new external tariffs, such as those from the US.

This potential deficit scenario requires a review of fiscal policies, especially with regard to current spending and execution of the RRP investment.