Portuguese gov't approves amended budget without tax hike

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ATAHK reads from Xinhua News that The Portuguese government approved on Tuesday the country's second amended budget this year without a further tax hike, according to an official statement. For details, please refer to the following news from Xinhua News on August 27th:

Following a three-hour cabinet meeting in the capital city of Lisbon, the government approved the amended budget "without any recourse to alterations of fiscal nature," the statement said.

The government said that the country will cut its government deficit to 4 percent of GDP for 2014 without introducing a further tax hike.

The amended budget will be presented to the Parliament on Thursday. The Portuguese Parliament will hold meetings on Sept. 4 and to review the amended budget and take a final vote on Sept. 11.

Portugal's Constitutional Court earlier this month rejected a governmental proposal to cut salaries for public sector employees between 2016 and 2018 and to impose a tax on public sector pensions. However, it approved public-sector salary cuts for 2014 and 2015.

Prime Minister Pedro Passos Coelho insisted over the weekend that the amended budget would not include a further tax hike for this year.

Portugal signed a 78 billion euros (103 billion U.S. dollars) bailout program with its international lenders -- the European Commission, the International Monetary Fund and the European Central Bank -- in May 2011.

Since then the government has had to raise tax and cut spending to meet the deficit reduction targets set in the program.

Portugal still has to cut its budget deficit to 2.5 percent of GDP in 2015.

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