This Report was preceded by the CFP’s Opinion on the macroeconomic forecasts underlying the 2016 Draft Budgetary Plan.
The Report is divided into five chapters. The first is an introduction which describes the document structure, and identifies the information provided by the various public entities. The second chapter analyses the revisions to the macroeconomic projections published in the 2016 Draft Budgetary Plan (DBP/2016), which was the subject of a Council Opinion and reassesses the risks underlying the new macroeconomic scenario.
The third chapter evaluates whether the budget projections are consistent with the macroeconomic scenario and the proposed measures, while the fourth chapter assesses the fiscal adjustment, the fiscal policy stance and compliance with the budgetary rules applying to Portugal. The fifth and final chapter includes an analysis of the indebtedness forecast in the DSB/2016 and the expected change in public debt.
In order to better assess the fiscal consolidation effort, general government budget aggregates have been adjusted for the impact of temporary and one-off measures and other special factors over the period in question.