The government obtains the approval of both the House and Senate for the update note to the Economic and Financial Document as well as the budget deviation. The document's revised trend macroeconomic backdrop shows some lower corrections in GDP growth predictions for 2023 and 2024, owing to worse-than-expected economic data and international uncertainties. The prediction for 2025, however, remains constant, while the forecast for 2026 is marginally revised upwards. The Nadef depicts a sustained improvement in net borrowing to GDP from 2023 to 2026, albeit with less optimistic estimates than the EFD for 2023. The primary balance improved over the four-year period, from -3.8% of GDP to 1.5%; further improvement is anticipated in 2024, and the balance will turn positive in 2025, reaching 1.6% in 2026. The policy framework envisions deficit-to-GDP objectives that are higher than trend projections, with fiscal space available to finance fiscal measures. In the attached report, the Government has requested authorization from Parliament for an additional debt room of 15.7 billion in order to adopt measures to support the economy, such as tax wedge reduction and tax reform: measures that will enter the budget law and will be at the center of the next Council of Ministers, which could be summoned as early as Monday morning.
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