The president of the Court of Auditors warned today that Portugal still has a way to go to improve the management of public finances, remembering that the General State Account of 2024 does not comply with the Budgetary Framework Law.
“There is still a way to go in order to improve budget execution and public finance management”, highlighted Filipa Urbano Calvão, during a hearing at the Budget, Finance and Public Administration Commission (COFAP), on the opinion given by the court on the 2024 General State Account (CGE).
In the opinion, recalled Filipa Calvão, the court ruled that the account was not in compliance with the Budgetary Framework Law, “as it does not contain the balance sheet and income statement required since 2023”.
The president of the court highlighted that “this judgment cannot be reduced to a mere formalism, but rather reflects a significant limitation on the possibility of full certification of the State’s financial information”.
Filipa Calvão said that this is why the opinion contains 69 recommendations, “to help the State and the Government on this path”, and stressed that, as she did previously in parliament, that the assessment made by the court is monitored at the international level, “namely rating agencies and other bodies that monitor the sustainability of public finances”.
Judge advisor Ana Furtado, who accompanies Filipa Calvão, said that the CGE is “very comprehensive”, as it concerns the accounts of more than 1,500 entities, covering the central administration and Social Security.
Of the 69 recommendations, eight are new. Ana Furtado highlighted that public entities have two years to follow up.
Looking at those issued in the 2022 CGE, he added that of the 57 suggestions from the Court of Auditors, around 56% were partially implemented, 14% were implemented in full, with 30% still to be implemented.
“There is, in fact, progress”, pointed out the judge advisor, citing as examples the improvement in the control of tax benefits and the implementation of the Accounting Standardization System for Public Administrations, with greater advances in Social Security.