Result may be greater, says Portugal


Source: Reuters, 16/08/2005

The executive secretary of the Ministry of Finance, Murilo Portugal, assured yesterday that the proposal for the Federal Government's Budget for next year will maintain the primary surplus target at 4,25% of GDP (Gross Domestic Product).
For 2005, however, the secretary did not guarantee that the government will only comply with 4,25% - even because, according to him, it is difficult to “get it right”.
“We are currently, in the accumulated in 12 months, around 5%. There is also the historical experience that in each year we end up exceeding the target a little because the probability of hitting any number on the fly is almost zero ”, he told Reuters when asked about the possibility of the government pursuing a stricter fiscal target in this year.
“So, in order for you to be sure you are going to make 4,25%, you end up having to target a slightly larger number. This has been the experience of the last few years, but we are not planning any specific number above this one, ”he said.
Portugal participated yesterday in an event in São Paulo on tax evasion and tax burden.
The 2006 budget proposal should be sent to Congress by the end of this month. On Friday, former Minister of Education and current PT president, Tarso Genro, said that the government's economic area intended to propose in the Budget for next year to raise the fiscal target to 5% of GDP.