Analysis of the 2014-2018 Fiscal Strategy Document

The Portuguese Public Finance Fiscal report “Analysis of the 2014-2018 Fiscal Strategy Document” states that the fiscal goals set out in the FSD/2014 are suitable considering the state of public finances and the economy and are in line with current fiscal discipline rules. CFP underlines the importance of the assumption of public debt sustainability as a top priority of fiscal policy.

The consolidation measures identified in FSD/2014 are restricted to 2014-2015 and appear to be dictated by the need to achieve budget outcomes in this time horizon, being insufficient to support a macroeconomic strategy change which is required by the adopted scenario and the structural revision of the budget process.

For the period from 2016 to 2018, the FSD does not describe the additional measures needed to meet the targets set therein. Although less detail is to be expected compared to the 2015 measures, the FSD/2014 should explain the direction and overall amount of the revenue and expenditure measures that are inherent in the macroeconomic scenario and the budgetary planning framework.

Date of last update: 27/05/2014