Does a budget that does not serve the left nor the right serve the country?

Once again, no change in the levels of the IRS is enshrined in OE2021, an incomprehensible decision. Only withholding tax will be lower, but this will not mean tax relief.

The State Budget for 2021 (EO2021) should reflect the crisis in health and the economy and contribute to the future of the country. Big crises require big measures, but instead the Government opted for a budget full of absurd measures that tries to ideologically please BE and PCP and to relegate national interests to the background.

In the health area, the reinforcement of professionals for hospitals and health centers should be a priority and all political forces converge in this regard. It was advanced to the press that 4.200 professionals would be hired, but, discounting the departures verified this year, the number presented indicates that we are not increasing the number of professionals, but only replacing them at a crucial time when part of the hospitals are already overloaded and in break. The absurdity of the measure is complete when we know that the Executive has defined that it will only begin to survey the needs of the various clinical units by the end of 2021.

The extraordinary pension update, which aims to guarantee an increase for retirees with lower pensions, consists of a total increase of between six and ten euros, and is only expected in August in order to reduce the budgetary impact of the measure next year. But this date also implies a delay in paying the increase, which is already clearly insufficient, but relevant in a particularly difficult year and in which the beneficiaries are the population most affected by the health crisis.

Once again, no change in the levels of the IRS is enshrined in OE2021, an incomprehensible decision. Only withholding tax will be lower, but this will not mean tax relief. In a Budget that estimates a negative inflation of -2020% for 0,1, and an inflation rate of only 2021% for 0,7, the Executive decided not to proceed with the usual updates of the inflation rate brackets and the tax remains if unchanged.

In this field, the autonomous regions of the Azores and Madeira, when they no longer have exemption from the Tax on Petroleum Products (ISP), will feel the greatest effect of these disastrous measures. Road diesel and fuel oil used in the production of electricity and city gas are taxed at a rate corresponding to 25% of the ISP rate. However, OE2021 provides for the application of reduced rates of 50% in the tax for liqueurs, rum and brandy produced in Madeira and the Azores and declared for consumption on the continent. It sounds like an anecdote but it is unlikely to make any inhabitants of the autonomous regions laugh.

I am writing this article in the middle of negotiations for OE2021, without being sure of its approval or lead, but one thing is certain - the lack of preparation and the lack of strategy in the proposal did not serve the left or the right, much less the country. and the Portuguese. After all, who is this OE for?

The author writes according to the old spelling.


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