Cost of government’s Covid measures in 2021 “almost double” provision in State Budget

The various policy measures envisaged by the Portuguese government this year – almost all of them focused on facing up to the pandemic – are expected to have an impact on public accounts that will be almost double the amount predicted by the Ministry of Finance. This is the news from the Public Finance Council (CFP) which has released its analysis of the Stability Programme 2021-2025 today. In concrete terms what this means is that “Covid-19 will have a negative impact of around 5.9 billion euros on public spending” – part of which will be covered by community funding (2.2 billion euros). CFP says the deficit will improve when the temporary measures are removed, seeing a slow recovery from 2023.