Extra supplement for pensions will cost 400 ME

The Finance Minister said today that the extraordinary supplement for pensioners will cost around 400 million euros but will not compromise public finances, as the budgetary situation is "robust."

"The supplement will cost 400 million euros. We prefer this redistribution mechanism to a permanent increase in pensions because it generates rigid structural expenditure," said Joaquim Miranda Sarmento, at the press conference following the Council of Ministers.

The minister stressed that economic activity generates a "budgetary dividend", which will have as its "first priority to reduce public debt", but that the Government also wants to "use part of this dividend to help those who are in greater difficulty, who no longer have other sources of income and have very low pensions".

Regarding the budgetary margin to implement this measure, Miranda Sarmento highlighted that "at this moment, the available information indicates a robust, comfortable budgetary situation", adding that this year there is "more robust data on budget execution earlier than last year".

The Government estimates a surplus of 0.3% of Gross Domestic Product (GDP) this year, although institutions such as the Bank of Portugal estimate a deficit this year or next.

The Finance Minister said today that the extraordinary supplement for pensioners will cost around 400 million euros but will not compromise public finances, as the budgetary situation is "robust."

"The supplement will cost 400 million euros. We prefer this redistribution mechanism to a permanent increase in pensions because it generates rigid structural expenditure," said Joaquim Miranda Sarmento, at the press conference following the Council of Ministers.

The minister stressed that economic activity generates a "budgetary dividend", which will have as its "first priority to reduce public debt", but that the Government also wants to "use part of this dividend to help those who are in greater difficulty, who no longer have other sources of income and have very low pensions".

Regarding the budgetary margin to implement this measure, Miranda Sarmento highlighted that "at this moment, the available information indicates a robust, comfortable budgetary situation", adding that this year there is "more robust data on budget execution earlier than last year".

The Government estimates a surplus of 0.3% of Gross Domestic Product (GDP) this year, although institutions such as the Bank of Portugal estimate a deficit this year or next.

The Finance Minister said today that the extraordinary supplement for pensioners will cost around 400 million euros but will not compromise public finances, as the budgetary situation is "robust."

"The supplement will cost 400 million euros. We prefer this redistribution mechanism to a permanent increase in pensions because it generates rigid structural expenditure," said Joaquim Miranda Sarmento, at the press conference following the Council of Ministers.

The minister stressed that economic activity generates a "budgetary dividend", which will have as its "first priority to reduce public debt", but that the Government also wants to "use part of this dividend to help those who are in greater difficulty, who no longer have other sources of income and have very low pensions".

Regarding the budgetary margin to implement this measure, Miranda Sarmento highlighted that "at this moment, the available information indicates a robust, comfortable budgetary situation", adding that this year there is "more robust data on budget execution earlier than last year".

The Government estimates a surplus of 0.3% of Gross Domestic Product (GDP) this year, although institutions such as the Bank of Portugal estimate a deficit this year or next.