Portugal pledges to meet 2017 state budget objectives

Portugal's Finance Minister Mario Centeno assured in a letter to the European Commission on Friday that the objectives outlined in its state budget for 2017 will be met.

The country's previsions regarding fiscal revenue and contributions to social security for 2017 were very "prudent," Centeno said.

While the Portuguese economy is dependent on "significant challenges," he said tax revenue would rise by 2.9 percent in 2017.

Centeno said it would be possible to gather around 100 million euros (109 million U.S. dollars) each year from a program to regulate tax debt and social security debt during the next ten years.

He also said he expected an increase in social security contributions through a growth of employment and salary raises. Expenditure on unemployment benefits would drop by around 6.7 percent, he said.

Brussels has been given until Nov. 7 to issue a comment in response to the letter, according to local media reports.

The letter came after the European Commission requested clarifications from Portugal's 2017 state budget regarding revenue items earlier this week.

Portugal has brushed off doubts by the European community, with Centeno on Thursday pointing out that discussions with the European Union (EU) had been carried out in a constructive fashion.

Portugal's minority Socialist government, backed by the Left Bloc and Communist Party in parliament, is aiming to reduce the budget deficit next year to 1.6 percent from this year's estimated 2.4 percent.

The government has focused on reversing austerity while raising indirect taxes to meet EU fiscal rules. Enditem