Thursday 1 September 2011

one more piece of information

The Portuguese Government made available a new document containing the strategy to bring the budget deficit into control (the document is in Portuguese). Although most, if not all, press has given prime time to the increase in taxes for the higher income bracket and to firms with profits above a certain threshold, the document actually contains more information.

An important one, in my view, is a picture showing that past programs have failed dramatically predictions of return to economic growth, and overstated in a systematic way the control of public spending. This puts obvious pressure for the current Government to do differently. And there is a very specific concern in the document to improve the tools for budget control within the Government.


  1. Although most, if not all, press has given prime time to the increase in taxes

    Pidgin english? Howzit brah?

    It’s been said before that the central core of economics in Portucale failed to predict the great budgetary deficit(or damn, can’t we call it a hole without funds already?

    It’s been 37 years and it’s growing enough) and that only a few key groups of people noticed anything unusual, some saw the classic pattern of confidence, mania, panic, and crash unfolding.
    People who try to go under the economy as a system of accounts saw a number of huge imbalances in the flow of funds.
    Marxists considered that the source of the imbalances was the super-exploitation of Chinese workers and the maldistribution of the proceeds of growth in the Western EuROpá.

    But,buts from a maniac perspective, the CEE economies are part of a huge automotive engineering cluster rather like the former US'AAAA rustbelt or the (let say) West Midlands in the UK, reaching over from the Rhin area to Slovakia.

    From an old industrial perspective, (and that are changing) they are part of the german motor industry’s global supply chain, (and Portucale is out nyet?-whether as upstream suppliers of parts and sub-assemblies or as downstream final assembly contractors and Biana Do CHâteau is out of form)

    You can argue whether "in your view, is a picture ??? where?showing that past programs have failed dramatically (and you have past programs? predictions of return to economic growth, and overstated in a systematic way the control of public spending....(confuse or messy) functional specialisation of portuguese economy determines this,so called conTROL OF pub'lic spending (but that’s not really relevant right now).

    To put it another way, you Portucale aren’t exporters to “the German locomotive” but rather to the German economy’s customers

    I have twelve pounds of chocolate bars made in germany and many goods german made and far less
    than the average Putuguês

    du mich verstanden? Nein?

  2. One item missing the the Buddget Strategy 2011-15 is the implementation of a global ceiling on PPP liabilities, a requirement of the LEO-Budget Framework Law since at least 2001.

    Will PPPs continue to escape the budget constraint?

    4. Law 91/2001 of 20 August, Lei de Enquadramento Orçamental, Budget Framework Law, article 28, clause (l) required that the annual Government budget include “The determination of the maximum possible commitments to be made with contracts to provide services under private finance or other form of partnership of public and private sectors” (A determinação do limite máximo de eventuais compromissos a assumir com contratos de prestação de serviços em regime de financiamento privado ou outra forma de parceria dos sectores público e privado)