Portugal unveils 2016 draft budget after Brussels approval

The Portuguese government unveiled Friday its draft state budget for 2016, which was approved by the European Commission.

Portuguese Finance Minister Mario Centeno said that the "responsible budget" showed that there is chance to "reduce the deficit and public debt with fiscal measures that can promote economic growth, job creation and social security."

To achieve a deficit that accounts for 2.2 percent of the GDP and an economic growth rate of 1.8 percent in 2016 as outlined in the budget, Portugal will focus on levying extraordinary taxes on banks as well as on the automobile and petroleum industries.

"When the fuel price goes up, so do the revenues from VAT," said Costa Andrade, secretary of state for fiscal affairs.

The European Union has pressed Portugal to make more financial arrangements to meet with the European regulations.

The Portuguese government and the European Commission have engaged recently in tough negotiations on the country's state budget in 2016. The latter was given a green light after Lisbon promised to cut 11 billion euros in public spending.

Centeno said that "there are only winners in the agreement" and that Brussels' approval is "a sign of international trust."

The draft budget will be discussed in parliament and the final voting is scheduled on March 16, allowing it to come into effect on April 1. Endi