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UTAO coordinator maintains that the reduction of public debt in 2023 was “artificial”

The coordinator of UTAO, Rui Baleiras, defended this Wednesday that he maintained what he wrote in the report, which indicates that the reduction in public debt in 2023 was “artificial”, as it was due to an increase in the purchase of securities by public entities. “There is an important part of the decline in the public debt stock in 2023 that is due to a significant increase in the purchase of bonds”, said the coordinator of UTAO in the Budget, Finance and Administration committee o Pública, pointing out that “net acquisitions explain 86% of the drop”.

The coordinator explained the statement that there is an “artificiality” in debt reduction, for which he assumed responsibility, pointing out that a Public Administration entity can buy securities and then sell them on the secondary market, but taxpayers’ responsibilities remain the same.

“I stand by what is written in the report, but given the reaction that there has been in the last two months regarding DLEO, if I could go back I would have written the explanation I gave here”, indicated Rui Baleiras, pointing out that it was not all the artificial descent, but the part that concerns the acquisition of titles. “As long as the responsibility of taxpayers towards the debt issued by the Republic remains”, there is an artificiality, he pointed out.

Rui Baleiras also added that the report arose out of “curiosity”, after at the end of 2023 he received “signs that unusual operations could have occurred tending to anticipate the decline in public debt”.

In a report on market conditions, public debt and external debt until March, released on April 10, UTAO considers that the substantial increase in public debt consolidation factors in 2023 results from budget surpluses and the “deliberate search for investments in bonds”, indicating that this increase in investments of organic units in debt instruments will result in some cases “from mere management options o”, there are also cases in which “financial management options were conditioned by Government guidelines”.

The document from the organization led by Rui Baleiras classifies the reduction in public debt as “artificial”. The public debt ratio stood at 99.1% of Gross Domestic Product (GDP) in 2023 and in nominal terms decreased by 9.3 billion euros compared to the previous year, to 263.1 billion euros.

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Francesco Giganti

Journalist, social media, blogger and pop culture obsessive in newshubpro

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